Question

If the standard hours allowed are less than the standard hours at normal capacity, the volume...

If the standard hours allowed are less than the standard hours at normal capacity, the volume variance

cannot be calculated.

will be favourable.

will be unfavourable.

will be greater than the spending variance.

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Answer #1

Answer) will be unfavourable

thus if the standard hours allowed are less than the standard hours at normal capacity the volume variance will be unfavourable.

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