Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?
A) The sum of the fixed and variable spending variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
B) The sum of the fixed and variable spending and variable efficiency variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
C) The sum of the fixed and variable spending,variable efficiency and production-volume variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
D) The fixed spending variance in the four-variance method is equal to the flexible-budget variance in the two-variance method.
Correct Answer:
Verified
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