The Management of Vert Lawnmowers Has Calculated the Following Variances

question 121

Multiple Choice

The management of Vert Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 8,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 38,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 17,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \\\hline \text { Variable overhead cost variance } & 3,500 \mathrm {~F} \\\hline \text { Variable overhead efficiency variance } & 5,000 \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 3,000 \mathrm {~F} \\\hline\end{array}$$ When determining the total production cost flexible budget variance,what is the total manufacturing overhead variance of the company?

• A)$5,000 F
• B)$8,500 F
• C)$3,000 F
• D)$11,500 F

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Definitions:

Increase

An upward movement in quantity, value, or some other measure, indicating growth or accumulation.

Income Taxed

A government levy on individual or corporate income.

Regressive Tax Structure

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on low-income earners compared to high-income earners.

Proposal

A formal suggestion or plan put forward for consideration or discussion by others.