An unfavorable production volume variance decreases the manufacturing costs shown on the income statement.

Question

Quizplus · Accepted Answer

An unfavorable production volume variance indicates that the actual production volume was lower than the budgeted production volume, resulting in higher manufacturing costs per unit. Therefore, an unfavorable production volume variance increases the manufacturing costs shown on the income statement.

An Unfavorable Production Volume Variance Decreases the Manufacturing Costs Shown