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 and variable efficiency variances in the four-variance method is equal to the production-volume variance in the two-variance method.
b. The sum of the fixed production-volume and variable efficiency variances in the four-variance method is equal to the production-volume variance in the two-variance method.
c. The fixed production-volume variance in the four-variance method is equal to the production-volume variance in the two-variance method.
d. The sum of the fixed spending and fixed production-volume variances in the four-variance method is equal to the production-volume variance in the two-variance method.
c
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Answer the following statement true (T) or false (F)