If fewer units are produced than had been estimated when standard unit costs were determined,there would normally be:
A)A favorable labor efficiency (usage)variance.
B)An unfavorable overhead volume variance.
C)A favorable materials quantity variance.
D)An unfavorable overhead spending variance.

Question

Quizplus · Accepted Answer

If fewer units are produced than had been estimated, then the overhead costs will be spread over fewer units, leading to an unfavorable overhead volume variance. The other options are not related to the production of fewer units.

If Fewer Units Are Produced Than Had Been Estimated When