Which of the following factors results in an unfavorable fixed factory overhead volume variance?
A) A budgeted increase in sales that requires more advertising expenses
B) The payment of long-term debt payments
C) An unexpected increase in the cost of utilities
D) Work stoppages caused by lack of materials

Question

Quizplus · Accepted Answer

An unfavorable fixed factory overhead volume variance occurs when the actual volume of production is lower than the budgeted volume, resulting in fixed overhead costs being spread over fewer units produced. Work stoppages caused by lack of materials would decrease the volume of production, leading to an unfavorable fixed factory overhead volume variance. A, B, and C are not related to the fixed factory overhead volume variance.

Which of the Following Factors Results in an Unfavorable Fixed