The unused capacity variance is
A)the difference in costs between activity availability and activity usage.
B)the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used.
C)the difference in costs between practical capacity of activity and the standard capacity of the activity.
D)none of these.

Question

Quizplus · Accepted Answer

The unused capacity variance refers to the difference in costs between activity availability (what is available to be used) and activity usage (what is actually used). This variance helps in identifying inefficiencies in the use of resources.

The Unused Capacity Variance Is