Which of the following statements is FALSE?
A)The overhead volume variance indicates whether plant facilities were used efficiently during the period.
B)The costs that cause the overhead volume variance are usually controllable costs.
C)The overhead volume variance relates solely to fixed costs.
D)The overhead volume variance is favourable if standard hours allowed for output are greater than the standard hours at normal capacity.

Question

Quizplus · Accepted Answer

The costs that cause the overhead volume variance are generally fixed costs, which are not typically controllable in the short term. This variance measures the efficiency in utilizing the production capacity rather than controlling costs.

Which of the Following Statements Is FALSE