The management of Earth Barber Lawnmowers has calculated the following variances: Direct materials cost variance $10,000 U 40,000 F Direct materials efficiency variance Direct labor cost variance 15,000 F 12,000 U Direct labor efficiency variance 3,000 F 6,500 F 3,500 F Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance 2,500 F

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Quiz 5

The management of Earth Barber Lawnmowers has calculated the following variances:
Direct materials cost variance
$10,000 U
40,000 F
15,000 F
12,000 U
3,000 F
6,500 F
3,500 F
2,500 F
Direct materials eficiency variance
Direct labor cost variance
Direct labor efficiency variance
Variable overhead cost variance
Variable overhead efficiency variance
Fixed overhead cost variance
Fixed overhead volume variance
When determining the total product cost flexible budget variance, what is the total fixed overhead variance of the company?
O A. $5,500 F
O B. $3,500 F
OC. $10,000 F
O D. $6,500 F
Transcribed Image Text:The management of Earth Barber Lawnmowers has calculated the following variances: Direct materials cost variance $10,000 U 40,000 F 15,000 F 12,000 U 3,000 F 6,500 F 3,500 F 2,500 F Direct materials eficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance When determining the total product cost flexible budget variance, what is the total fixed overhead variance of the company? O A. $5,500 F O B. $3,500 F OC. $10,000 F O D. $6,500 F
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