Froelech Company Has Developed Capacity Standards -Refer to the Figure

question 27

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 unused capacity variance?

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

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Definitions:

Validity

The degree to which an idea, inference, or measurement is substantiated and probably accurately reflects reality.

Reliability

How much a testing tool delivers steady and dependable results throughout time.

Validity

The degree to which a notion, conclusion, or measurement is solidly based and accurately reflects reality.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, often in a way that is considered to be unfair.