As the name suggests, the flexible budget variance is the difference between the and bince the actual results and the and of output, this variance highlights unexpected revenues and expenses that are caused by factors other than 7. Define the volume variance. What causes it? The volume variance is the difference between the and the The only difference between these two budgets is the volume of units on which they are based . Therefore, the volume variance is caused by differences between 8. Fill in the missing numbers in the performance report. Be sure to indicate whether variances are favorable (F) or unfavorable (U). (Enter the variances as positive numbers. Label each variance a: favorable (F) or unfavorable (U). If the variance is 0 , make sure to enter in a "0". A variance of zero is considered favorable.)