In a three-variance method of factory overhead analysis, the variance that indicates that the volume of production was more or less than budgeted is the:

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The factory overhead capacity variance in a three-variance method of factory overhead analysis indicates the volume of production was more or less than budgeted because it reflects the difference between budgeted fixed overhead and the fixed overhead rate multiplied by the actual hours worked.
The factory overhead efficiency variance is the difference between the factory overhead applied and the actual hours worked multiplied by the standard rate.
The budget or spending factory overhead variance is the difference between the actual overhead incurred and the budgeted overhead for the actual hours worked.

In a Three-Variance Method of Factory Overhead Analysis, the Variance