An unfavorable overhead volume variance results from:
A)An unfavorable overhead spending variance.
B)Poor decisions made by the production manager.
C)Producing at levels of output which exceed normal output levels.
D)Producing at levels of output which fall short of normal output levels.

Question

Quizplus · Accepted Answer

An unfavorable overhead volume variance is a result of producing at levels of output which fall short of normal output levels. This means that the budgeted overhead was based on a certain level of output, but the actual production level was lower than expected, causing the overhead costs to be spread over fewer units and resulting in a higher cost per unit.

An Unfavorable Overhead Volume Variance Results From