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7 years ago
The management of Zeta Fire Alarms has calculated the following variances:

Direct materials cost variance         $9,000 U
Direct materials efficiency variance   36,000 F
Direct labor cost variance            15,000 F
Direct labor efficiency variance      13,500 U
Total variable overhead variance      8,500 F
Total fixed overhead variance         3,000 F

What is the total direct materials variance of the company?
A) $11,500 F
B) $27,000 F
C) $1,500 F
D) $6,000 F
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
This was certainly a tough question, loving the expertise
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