An unfavorable overhead volume variance indicates that:a. Total fixed overhead has exceeded the standard amountbudgeted.b. Variable overhead per unit has exceeded the standardamount budgeted.c. Actual production was less than the normal volume ofoutput.d. Actual production was more than the normal volume ofoutput.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
An unfavorable
a. Total fixed overhead has exceeded the standard amount
budgeted.
b. Variable overhead per unit has exceeded the standard
amount budgeted.
c. Actual production was less than the normal volume of
output.
d. Actual production was more than the normal volume of
output.
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