Asked by Jennifer Knott on Apr 29, 2024
Verified
What is the overhead volume variance? What would be the cause of a favorable volume variance?
Favorable Volume Variance
A metric that indicates a company has produced or sold more than initially anticipated, leading to increased profitability.
- Acquire knowledge on the computation of various variance types, such as material, labor, and overhead variances.
- Learn the reasons behind different variances and their impact on a company’s financial performance.
Verified Answer
MA
Marie-Axelle AnomanMay 03, 2024
Final Answer :
A volume variance occurs when the actual volume of production is different from the standard volume of production,based solely on fixed overhead.A favorable volume variance would occur if the actual number of units produced exceeds the standard or budgeted number of units produced.
Learning Objectives
- Acquire knowledge on the computation of various variance types, such as material, labor, and overhead variances.
- Learn the reasons behind different variances and their impact on a company’s financial performance.
Related questions
Lavoie Company Planned to Use 18,500 Pounds of Material Costing ...
Presented Below Are Terms Preceded by Letters a Through H ...
What Are Some Causes of Direct Labor Rate and Efficiency ...
Ruby Company Produces a Chair That Requires 5 Yards of ...
Ruby Company Produces a Chair That Requires 5 Yards of ...