Figure 18-2
Allende Company Has Developed Capacity Standards -Refer to Figure 18-2

Figure 18-2
Allende Company has developed capacity standards. Information is as follows for a value-added activity: $\begin{array}{lr}\text { Activity capacity acquired } & 60 \\\text { Activity capacity used } & 50 \\\text { Actual activity usage } & 30 \\\text { Standard fixed activity rate } & £ 2,000\end{array}$
-Refer to Figure 18-2. The unused capacity variance is

A) £20,000 favourable.
B) £40,000 favourable.
C) £60,000 favourable.
D) There is no variance.