An unfavourable overhead volume variance indicates that _____?

ایک نامناسب اوور ہیڈ حجم کا تغیر اس بات کی نشاندہی کرتا ہے کہ _____؟

Actual production was less than the normal level of output.

Total fixed overhead has exceeded the standard budgeted amount.

Actual production was more than the normal level of output.

None of these

Explanation

An unfavorable overhead volume variance occurs when actual production is lower than the expected or normal level, leading to under-applied fixed overhead costs.

This means the company did not produce enough to fully absorb the fixed overhead, causing higher costs per unit.