A favorable volume variance occurs when the
A) Denominator level exceeds the number of units produced
B) Number of units produced exceeds the number of units sold
C) Number of units sold exceeds the denominator level
D) Number of units produced exceeds the denominator level

Question

Quizplus · Accepted Answer

A favorable volume variance occurs when the actual production exceeds the expected or budgeted production level, known as the denominator level, leading to better absorption of fixed costs.

A Favorable Volume Variance Occurs When the