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

Required:

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

Company A 15,000 27,000 Full-capacity MHs 30,000 Budgeted MHs* 12,500 25,000 30,000 Actual MHs 26,000 12,500 28,000 Standard MHs allowed for actual production 13,000 23,000 30,000