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

question 89

Multiple Choice

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.

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Breach of Contract

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