Which of the following is false?
A)The total overhead budget variance relates primarily to fixed overhead costs.
B)The fixed overhead volume variance relates only to fixed overhead costs.
C)If production exceeds normal capacity, the overhead volume variance will be favourable.
D)A two-variance analysis of overhead consists of a spending variance and a volume variance.

Question

Quizplus · Accepted Answer

The total overhead budget variance includes both variable and fixed overhead costs, not primarily fixed overhead costs. The statement is false because it inaccurately limits the scope of the total overhead budget variance to fixed overhead costs only.

Which of the Following Is False