Use the following information for the next 3 questions.
Vashon Corporation had the following activity during a recent period:
-Which of the following statements is false?
A) The actions of a purchasing manager can affect a production manager's variances
B) The actions of a production manager can affect a purchasing manager's variances
C) Inefficient use of the fixed overhead cost allocation base will cause an unfavorable production volume variance
D) Inefficient use of the variable overhead cost allocation base will cause an unfavorable variable overhead efficiency variance

Question

Use the following information for the next 3 questions.
Vashon Corporation had the following activity during a recent period: 
-Which of the following statements is false?
A) The actions of a purchasing manager can affect a production manager's variances 
B) The actions of a production manager can affect a purchasing manager's variances 
C) Inefficient use of the fixed overhead cost allocation base will cause an unfavorable production volume variance 
D) Inefficient use of the variable overhead cost allocation base will cause an unfavorable variable overhead efficiency variance

Quizplus · Accepted Answer

The production volume variance is related to the difference between the budgeted and actual production levels, not the efficiency of using the fixed overhead cost allocation base.

Use the Following Information for the Next 3 Questions