The management of Alpha Lawnmowers has calculated the following variances
Direct materials cost variance $8,000 U
Direct materials efficiency variance 40,000 F
Direct labor cost variance 17,000 F
Direct labor efficiency variance 13,000 U
Variable overhead cost variance 3,000 F
Variable overhead efficiency variance 5,500 F
Fixed overhead cost variance 4,000 F
What is the total variable overhead variance of the company?
A) $2,500 F
B) $12,500 F
C) $8,500 F
D) $4,000 F
C .C)
Variable overhead cost variance $3,000 F
Variable overhead efficiency variance 5,500 F
Total variable overhead variance $8,500 F
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