The Management of Zeta Company Has Calculated the Following Variances

question 92

Multiple Choice

The management of Zeta Company has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 35,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 15,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 12,000 \mathrm { U } \\\hline \text { Total variable overhead variance } & 7,000 \mathrm {~F} \\\hline \text { Total fixed overhead variance } & 3,050 \mathrm {~F} \\\hline\end{array}$$
-Calculate the total direct materials variance of Zeta Company.

• A) $3,000 F
• B) $27,000 F
• C) $10,050 F
• D) $7,000 F

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