Which of the following statements may be true if actual units produced exceed the budgeted units to be produced?
A)Production volume variance is expected to be unfavorable.
B)Overhead flexible budget variance is expected to be favorable.
C)Fixed overhead volume variance is expected to be favorable.
D)Overhead flexible budget variance is expected to be unfavorable.

Question

Quizplus · Accepted Answer

When actual units produced exceed the budgeted units, the fixed overhead volume variance is expected to be favorable because the fixed overhead costs are spread over more units than planned, reducing the cost per unit.

Which of the Following Statements May Be True If Actual