The Management of Vert Lawnmowers Has Calculated the Following Variances

question 52

Multiple Choice

The management of Vert Lawnmowers has calculated the following variances: $$\begin{array} { | l | r | } \hline \text { Direct materials cost variance } & \$ 11,000 \mathrm { U } \\\hline \text { Direct materials efficiency variance } & 36,000 \mathrm {~F} \\\hline \text { Direct labor cost variance } & 17,000 \mathrm {~F} \\\hline \text { Direct labor efficiency variance } & 14,000 \mathrm { U } \\\hline \text { Variable overhead cost variance } & 2,000 \mathrm {~F} \\\hline \text { Variable overhead efficiency variance } & 6,000 \mathrm {~F} \\\hline \text { Fixed overhead cost variance } & 3,500 \mathrm {~F} \\\hline\end{array}$$ When determining the total production cost flexible budget variance,what is the total manufacturing overhead variance of the company?

• A) $6,000 F
• B) $8,000 F
• C) $3,500 F
• D) $11,500 F

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Definitions:

Domestic Investment

The financial commitment made by residents of a country within its own borders, involving the acquisition of assets and undertaking projects that are expected to generate future income or capital gains.

Saving

The portion of income not spent on current consumption but set aside for future use, often in forms like deposits in savings accounts or investments.

Exports

Goods or services produced in one country and sold to buyers in another, constituting a critical component of international trade.

Bond

A certificate of indebtedness