An unfavourable production-volume variance occurs when:
A)production exceeds the denominator level.
B)production exceeds unit sales.
C)the denominator level exceeds production.
D)unit sales exceed production.

Question

Quizplus · Accepted Answer

An unfavorable production-volume variance occurs when the denominator level (which represents the expected or standard level of production) exceeds the actual production. This means that the company produced less than what was planned or expected, leading to underutilized resources and higher fixed costs per unit.

An Unfavourable Production-Volume Variance Occurs When