What is the capacity variance composed of aside from the unused capacity variance?
A)the activity volume variance
B)the used capacity variance
C)the activity benchmark
D)the value-added standard

Question

Quizplus · Accepted Answer

The capacity variance is composed of the unused capacity variance and the activity volume variance. The activity volume variance measures the difference between the budgeted activity and the actual activity, while the unused capacity variance accounts for the cost of capacity that was available but not utilized.

What Is the Capacity Variance Composed of Aside from the Unused