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Is The Labor Price Variance Favorable Or Unfavorable

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Is The Labor Price Variance Favorable Or Unfavorable
Assume the labor price variance is unfavorable. Was the labor usage variance favorable or unfavorable?

When price variance is unfavorable, labor usage variance will definitely be favorable; this is because the total variance is favorable. This is because total variance is composed of labor price variance and labor usage. They will in turn have to offset each other so that total variance will be favorable. If both the two was unfavorable, this will mean that the total variance will in turn be unfavorable, which is not.

Is the fixed cost volume variance favorable or unfavorable? Explain the effect of this variance on the cost of each unit produced.

Fixed cost volume variance will be favorable if more units were to be produced that what was
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