An unfavorable volume variance in a factory is generally:
A)The responsibility of the production manager.
B)Viewed as an idle capacity loss.
C)The result of actual volume exceeding normal volume.
D)Treated as part of the controllable factory overhead variance.

Question

Quizplus · Accepted Answer

An unfavorable volume variance in a factory means that the actual volume is less than the expected or normal volume. This would lead to idle capacity loss as the factory is not operating at its full capacity. This is not the responsibility of the production manager and is not part of the controllable overhead variance.

An Unfavorable Volume Variance in a Factory Is Generally