Selected operating information on three different companies for a recent year is given below:

Required:

For each company, state whether the company would have a favorable or unfavorable volume variance and why.

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Company A в Full-capacity machine-hours Budgeted machine-hours*. Actual machine-hours 10,000 18,000 20,000 17,000 20,000 9,000 17,800 9,000 19,000 Standard machine-hours allowed for actual 9,500 20,000 production *Denominator activity for computing the predetemined overhead rate. 16,000