Calculate overhead variances using variable costing

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Reference no: EM13148487

XYZ uses a standard costing system for allocating all of their product costs. Dave is held responsible for the variances determined by the standard costing system. He has been complaining about the unfavorable fixed overhead volume variances charged to his product lines as it negatively impacts his performance evaluations. Which below may solve Dave's concern and still maintain the integrity of a standard costing system and not impact the company's operations.

A) Use variable costing to calculate the overhead variances.

B) Allocate the unfavorable fixed overhead volume variance equally among product lines.

C) Close the unfavorable fixed overhead volume variance to each product lines cost of goods sold.

Reference no: EM13148487

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