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The management of Earth Barber Lawnmowers has calculated the following variances:
Direct materials cost variance $8,000UDirect materials efficiency variance 37,000 FDirect labor cost variance 18,000 FDirect labor efficiency variance 12,000 UVariable overhead cost variance 3,000 FVariable overhead efficiency variance 5,000 FFixed overhead cost variance 4,000 FFixed overhead volume variance 2,500F
Question 1: When determining the total product cost flexible budget variance, what is the total fixed overhead variance of the company?Answer choices
Option A. $7,000 F
Option B. $9,000 F
Option C. $4,000 F
Option D. $5,000 F
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