Magenta Company Has Developed Capacity Standards The Volume Variance Is:
A)$15,000 Unfavorable

question 7

Multiple Choice

Magenta Company has developed capacity standards. The following information is provided by Magenta: $\begin{array}{lr}\text { Standard cost of the activity capacity acquired } & \$ 125,000 \\\text { Standard cost of the activity capacity used } & 90,000 \\\text { Standard onst of the actial activity } & 100,000\end{array}$
The volume variance is:

• A)$15,000 unfavorable.
• B)$35,000 unfavorable.
• C)$25,000 unfavorable.
• D)$10,000 unfavorable.

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