Salvador Company has developed capacity standards. Information is as follows for a value-added activity: $$\begin{array} { l r }
\text { Activity capacity acquired } & 60 \
\text { Activity capacity used } & 50 \
\text { Actual activity usage } & 30 \
\text { Standard fixed activity rate } & \$ 2,000
\end{array}$$ The unused capacity variance is
A)There is no variance.
B)$60,000 favorable.
C)$40,000 favorable.
D)$20,000 favorable.

Question

Salvador Company has developed capacity standards. Information is as follows for a value-added activity: $$\begin{array} { l r } 
\text { Activity capacity acquired } & 60 \
\text { Activity capacity used } & 50 \
\text { Actual activity usage } & 30 \
\text { Standard fixed activity rate } & \$ 2,000
\end{array}$$ The unused capacity variance is
A)There is no variance.
B)$60,000 favorable.
C)$40,000 favorable.
D)$20,000 favorable.

Quizplus · Accepted Answer

The Answer of Salvador Company has developed capacity standards. Information is as follows for a value-added activity: $$\begin{array} { l r } 
\text { Activity capacity acquired } & 60 \
\text { Activity capacity used } & 50 \
\text { Actual activity usage } & 30 \
\text { Standard fixed activity rate } & \$ 2,000
\end{array}$$ The unused capacity variance is
A)There is no variance.
B)$60,000 favorable.
C)$40,000 favorable.
D)$20,000 favorable.

Salvador Company Has Developed Capacity Standards The Unused Capacity Variance Is A)There Is No Variance

Salvador Company Has Developed Capacity Standards The Unused Capacity Variance Is
A)There Is No Variance