Froelech Company Has Developed Capacity Standards -Refer to the Figure

question 52

Multiple Choice

Froelech Company has developed capacity standards. Information is as follows:
$\begin{array}{llr} \text {Standard cost of the activity capacity acquired } &\$150,000\\ \text { Standard cost of the activity capacity used } &100,000\\ \text { Standard cost of the actual activity used} &120,000\end{array}$

-Refer to the figure.What is the volume variance?

• A)$20,000 unfavourable
• B)$30,000 unfavourable
• C)$35,000 unfavourable
• D)$50,000 unfavourable

---

Definitions:

Terminate

To bring an end to something; in business, it can refer to the conclusion of a contract, the end of an employment relationship, or the cessation of operations.

Scientific Process

A systematic method of investigation involving observation, experiment, and the development of theories or principles.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Data

Information collected for reference, analysis, or to inform decisions, often structured for easy access and study.