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The Management of Alpha Lawnmowers Has Calculated the Following Variances

Question 72

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The management of Alpha Lawnmowers has calculated the following variances:  Direct materials cost variance $9,000U Direct materials efficiency variance 36,000 F Direct labor cost variance 16,000 F Direct labor efficiency variance 13,000U Variable overhead cost variance 2,000 F Variable overhead efficiency variance 6,500 F Fixed overhead cost variance 4,000 F\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

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