If the standard hours allowed are less than the standard hours at normal capacity the volume variance
A) cannot be calculated.
B) will be favorable.
C) will be unfavorable.
D) will be greater than the controllable variance.

Question

Quizplus · Accepted Answer

If the standard hours allowed are less than the standard hours at normal capacity, it means that the company was not able to produce as much as it should have in normal circumstances. Therefore, the volume variance will be unfavorable as the company was not able to achieve the expected output.

If the Standard Hours Allowed Are Less Than the Standard