Which of the following statements is FALSE?
A) The expected variable overhead costs per unit used in the flexible budget are equal to the variable overhead costs per unit used in product costing.
B) If the actual volume of production equals the expected volume of production, the variable overhead costs per unit are the same for product costing and budgeting.
C) If the actual volume of production exceeds the expected volume of production, the variable overhead costs per unit are different for product costing and budgeting.
D) If the actual volume of production exceeds the expected volume of production, the variable overhead costs per unit are the same for product costing and budgeting.

Question

Quizplus · Accepted Answer

If the actual volume of production exceeds the expected volume of production, the variable overhead costs per unit remain the same for both product costing and budgeting, as they are based on a per-unit basis, not on total volume.

Which of the Following Statements Is FALSE