Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0-
Standard cost of the actual activity used 50,000
The volume variance is
A) $10,000 unfavorable.
B) $10,000 favorable.
C) $60,000 favorable.
D) $60,000 unfavorable.

Question

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The Answer of Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0-
Standard cost of the actual activity used 50,000
The volume variance is
A) $10,000 unfavorable.
B) $10,000 favorable.
C) $60,000 favorable.
D) $60,000 unfavorable.

Livingston Company Has Developed Capacity Standards