19. The variable overhead efficiency variance has nothing to do with efficient use of variable…


19.     The variable overhead efficiency variance has nothing to do with efficient use of variable over- head. Do you agree or disagree? Why?

20.     Explain why the fixed overhead spending vari- ance is usually very small.

 

 

21.     What is the cause of an unfavorable volume vari- ance? Does the volume variance convey any meaningful information to managers?

22.     Which do you think is more important for con- trol of fixed overhead costs: the spending vari- ance or the volume variance? Explain.

 

 

 

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