Volume variance under factory overhead analysis is caused by: Statement 1 – Unused plant capacity Statement 2- Decrease in demand from customers Statement 3 – Shortage of skilled workers Group of choices: Statement 1 and 3 Statement 2 and 3 Statement 1,2 and 3 Statement 1 and 3
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
- Volume variance under factory
overhead analysis is caused by:
Statement 1 – Unused plant capacity
Statement 2- Decrease in demand from customers
Statement 3 – Shortage of skilled workers
Group of choices:
Statement 1 and 3
Statement 2 and 3
Statement 1,2 and 3
Statement 1 and 3
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