Allende Company Has Developed Capacity Standards -Refer to the Figure

question 116

Multiple Choice

Allende Company has developed capacity standards. Information is as follows for a value-added activity:
$$\begin{array} { l } \text { Activity capacity acquired }&60 \\\text { Activity capacity used } &50\\\text { Actual activity usage }&30 \\\text { Standard fixed activity rate }&\$2,000\end{array}$$
-Refer to the figure.What is the unused capacity variance?

• A)$20,000 favourable
• B)$40,000 favourable
• C)$60,000 favourable
• D)$50,000 favourable

---

Definitions:

Daily Routine

A set schedule of activities that an individual follows on a daily basis, often including habits, chores, work, and leisure activities.

Targeting

The process by which marketers identify and serve specific segments of the consumer population based on characteristics like demographics, psychographics, and behavior.

Specific Consumers

Individual customers or segments of the market with particular needs, interests, and characteristics targeted by businesses.

Marketer

A person or an organization that promotes or sells products or services, focusing on identifying and meeting the needs of its target market.