Chapter 8

21. The fixed overhead volume variance measures the use of existing facilities and capacity.

a. True

b. False

22. If a company is operating at a capacity below its normal capacity in units, the fixed overhead volume variance will be favorable.

a. True

b. False

23. The responsibility of a production manager is limited to direct materials used.

a. True

b. False

24. It is not necessary to provide an area on the performance report for a manager's reasons for variances.

a. True

b. False

25. A performance report should contain cost or revenue items that the manager receiving the report can control.

a. True

b. False