What does an unfavorable overhead volume variance indicate?
A)The quantity of production was less than what was anticipated.
B)The company spent more costs on overhead than expected.
C)Production took longer than expected.
D)The company produced more units than it budgeted.

Question

Quizplus · Accepted Answer

An unfavorable overhead volume variance indicates that the quantity of production was less than what was anticipated. This means that the company did not produce enough units to cover its overhead costs, which can lead to inefficiencies and reduced profitability.

What Does an Unfavorable Overhead Volume Variance Indicate