Factory overhead has ________.

1. both fixed and variable cost elements
2. only fixed cost elements
3. only variable cost elements
4. None of these choices are correct.

An unfavorable volume variance occurs due to ________.

1. machine breakdowns
2. work stoppages caused by lack of materials or skilled labor
3. lack of enough sales orders to keep the factory operating at normal capacity
4. All of these choices are correct.