Favorable volume variances may be harmful when: 1) machine repairs cause work stoppages.
2) supervisors fail to maintain an even flow of work.
3) production in excess of normal capacity cannot be sold.
4) there are insufficient sales orders to keep the factory operating at normal capacity.

production in excess of normal capacity cannot be sold.

Explanation:

We say that there's a favorable volume variance in a situation whereby the production that's budgeted is less than the actual production.

Favorable volume variances may be harmful when production in excess of normal capacity cannot be sold. This is because since it can't be sold, this can bring about losses to the business.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.