In which of the following situations will the overhead volume variance be favorable?
A)When more units are produced than were originally planned
B)When actual overhead costs are less than the flexible budget
C)When the predetermined overhead rate was set too low
D)When there are units remaining in ending inventory

Question

Quizplus · Accepted Answer

When more units are produced than originally planned, the fixed overhead costs are spread over more units, reducing the cost per unit and resulting in a favorable overhead volume variance.

In Which of the Following Situations Will the Overhead Volume