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 production-volume variance indicates the difference between actual overhead costs and the budgeted overhead costs due to the change in production volume. It considers the fixed overhead costs that do not change with production levels. The other variances in the three-variance method of factory overhead analysis are the spending variance (difference between actual and budgeted spending) and the efficiency variance (difference between actual and budgeted efficiency in using variable overhead costs). The quantity variance is not a part of the three-variance method.

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