In a two-variance system for analyzing factory overhead, a favorable volume variance could be caused by:

Question

Quizplus · Accepted Answer

A favorable volume variance occurs when actual production levels exceed the standard production level set by management. The top salesman leaving the company, a machine breakdown and a work slow-down would be more likely to lead to actual production levels not meeting expected levels of production.

In a Two-Variance System for Analyzing Factory Overhead, a Favorable