ECONOMICS

Detailed explanation-1: -An unfavorable variance can occur due to changing economic conditions, such as lower economic growth, lower consumer spending, or a recession, which leads to higher unemployment. Market conditions can also change, such as new competitors entering the market with new products and services.

Detailed explanation-2: -An actual rate paid to labour is greater than budgeted rate, it means that the variance is unfavourable, the variance is unfavorable since the company paid more than what it expected.

Detailed explanation-3: -An unfavorable fixed overhead budget variance results when the actual amount spent on fixed manufacturing overhead costs exceeds the budgeted amount.

Detailed explanation-4: -The volume variance is considered favorable if the actual number of units consumed is lower than the standard number of units required as raw materials. On the other hand, if the actual number of units consumed is more than the standard number of units, it is considered unfavorable or adverse.