$$\begin{array}{l}\begin{array} { l c c c }
&&\text { Prod uction- }\
\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \
\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \
\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }
\end{array}
\end{array}$$
-The total production-volume variance should be ________.
A) $80,000 F
B) $80,000 U
C) $108,000 F
D) $108,000 U

Question

$$\begin{array}{l}\begin{array} { l c c c } 
&&\text { Prod uction- }\
\text { Variances } & \text { Spending } & \text { Efficiency } & \text { Volume } \
\text { Variable manufacturing overhead } & \$ 7,500 \mathrm {~F} & \$ 30,000 \mathrm { U } & ( \mathrm { B } ) \
\text { Fixed manufacturing overhead } & \$ 28,000 \mathrm { U } & ( \mathrm { A } ) & \$ 80,000 \mathrm { U }
\end{array}
\end{array}$$
-The total production-volume variance should be ________.
A) $80,000 F
B) $80,000 U
C) $108,000 F
D) $108,000 U

Quizplus · Accepted Answer

The total production-volume variance is the sum of the fixed and variable overhead volume variances. The fixed overhead volume variance is $80,000 U, and the variable overhead volume variance is (B). The total production-volume variance is therefore $80,000 U + (B).

-The Total Production-Volume Variance Should Be ________