The Management of Alpha Lawnmowers Has Calculated the Following Variances

question 72

Multiple Choice

The management of Alpha Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 9,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 16,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 13,000 \mathrm { U } \\\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \\\hline \text { Variable overhead efficiency variance } & 6,500 \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 4,000 \mathrm {~F} \\\hline\end{array}$$ What is the total variable overhead variance of the company?

• A) $4,500 F
• B) $12,500 F
• C) $8,500 F
• D) $4,000 F

---

Definitions:

Economic Domination

The condition where one country, corporation, or individual exerts significant control over the economic activities and decisions within a region or worldwide.

Homogenization

The process of making things uniform or similar by blending diverse elements, especially in culture or agriculture.

North American

Pertaining to the continent that includes Canada, the United States, and Mexico.

Fast-food Chains

Companies that operate outlets serving quick service foods, characterized by minimal table service and a focus on convenience.