When the company produces more units than expected,the unexpected capacity variance will be
A)favorable,because production is greater than capacity.
B)unfavorable,because production is less than practical capacity.
C)favorable,because production is greater than expected.
D)unfavorable,because the volume variance is unfavorable.

Question

Quizplus · Accepted Answer

The unexpected capacity variance refers to the difference between the actual production and the expected production based on the company's capacity. If the company produces more units than expected, it means they were able to utilize their capacity more efficiently than planned, which is a favorable outcome. Therefore, choice C is the best answer.

When the Company Produces More Units Than Expected,the Unexpected Capacity