Which of the Following Statements About Overhead Variances Is FALSE

question 62

Multiple Choice

Which of the following statements about overhead variances is FALSE?

• A)The difference between the budgeted fixed overhead and the fixed overhead applied is the volume variance.
• B)Standard hours allowed are used in calculating the volume variance.
• C)The spending variance pertains solely to fixed costs.
• D)The total overhead variance pertains to both variable and fixed costs.