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

Required:
For each company, state whether the volume variance would be favorable or unfavorable; also, explain in each case why the volume variance would be favorable orunfavorable.

Transcribed Image Text:

Company Full-capacity direct labor-hours..20,000 9,000 10,000 Budgeted direct labor-hoursn19,000 8,500 8,000 Actual direct labor-hours. Standard direct labor-hours allowed 19,500 8,000 9,000 for actual output. 18,500 8,250 9,500 Denominator activity for computing the predetermined overhead rate.