11-13 The volume variance is favorable when
quantity variance and results from differences
the activity level for a period, at standard, is
between the amount of variable overhead inputs
that should have been used and the amounts
greater than the denominator activity level.
that were actually used. Ordinarily these two
Conversely, if the activity level, at standard, is
elements are not separated.
less than the denominator level of activity, the
volume variance is unfavorable. The variance
does not measure deviations in spending. It
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Solutions Manual, Chapter 11 643
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