*Actual hours are equal to standard hours for units produced.
-An unfavorable fixed overhead volume variance can be due to all of the following except
A)sales orders at a low level
B)machine breakdowns
C)employee inexperience
D)an increase in utility costs

Question

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*Actual hours are equal to standard hours for units produced.​
-An unfavorable fixed overhead volume variance can be due to all of the following except
A)sales orders at a low level 
B)machine breakdowns 
C)employee inexperience 
D)an increase in utility costs

Quizplus · Accepted Answer

An unfavorable fixed overhead volume variance typically results from factors that affect the volume of production, such as low sales orders, machine breakdowns, or employee inexperience, which lead to lower than expected production levels. An increase in utility costs would affect the fixed overhead spending variance, not the volume variance, as it relates to the cost of the utilities rather than the volume of production.

​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

*Actual Hours Are Equal to Standard Hours for Units Produced.