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 that exceed normal output levels.
D)Producing at levels of output that fall short of normal output levels.

Question

Quizplus · Accepted Answer

An unfavorable overhead volume variance results from producing at levels of output that fall short of normal output levels. This means that the actual level of production is lower than the expected level, resulting in underutilization of resources and higher overhead costs per unit.

An Unfavorable Overhead Volume Variance Results From