Question

the budgeted fixed overhead costs exceeds fixed overhead applied to work in process, the volume variance is labeled _____

Answer 1

The volume variance is labeled unfavorable when the budgeted fixed overhead costs exceed the fixed overhead applied to work in process.

Step-by-step explanation:

The volume variance is labeled unfavorable when the budgeted fixed overhead costs exceed the fixed overhead applied to work in process. This means that the actual fixed overhead costs are higher than what was planned or expected. The volume variance indicates that the company produced fewer units than anticipated, resulting in higher fixed costs per unit.