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An unfavorable volume variance means that the fixed manufacturing overhead costs applied to the manufacturer's output were lower than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.
What is an unfavorable variance?
Variance is a term used in accounting to describe the discrepancy between an actual amount and a planned or budgeted amount. For instance, there will be a $5,000 or $13,000 difference if a company budgets $50,000 for repairs expenses but actually spends $45,000 or $63,000 instead. Similar to this, there will be a variance of $9,000 or $11,000 if a company budgets $280,000 in revenues but actually generates $271,000 or $291,000 instead.
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