If a Company Incurs a Lot of Different Variable Overhead

question 133

Multiple Choice

If a company incurs a lot of different variable overhead costs and the activity base is only slightly related to their consumption,which of the following statements is true?

• A)The variable overhead efficiency variance will be meaningless.
• B)The variable overhead spending variance will be meaningless.
• C)Both the variable overhead efficiency variance and the variable overhead spending variance will be meaningless.
• D)None of these ans choices are correct.

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