Which of the Following Correctly Demonstrates the Comparison of the Four-Variance

Multiple Choice

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.