Froelech Company Has Developed Capacity Standards What Is the Volume Variance?
A)$10,000 Unfavourable
B)$10,000 Favourable
C)$50,000

question 51

Multiple Choice

Froelech Company has developed capacity standards.Information about a non-value-added activity is as follows: $\begin{array}{llr} \text {Standard cost of the activity capacity acquired } &\$50,000\\ \text { Standard cost of the activity capacity used } &0\\ \text { Standard cost of the actual activity used} &40,000\end{array}$
What is the volume variance?

• A)$10,000 unfavourable
• B)$10,000 favourable
• C)$50,000 unfavourable
• D)$50,000 favourable

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Definitions:

Graphed

Represented data or quantities visually using a graph, such as a pie chart, line graph, or bar chart.

Slope

In mathematics, the slope is the measure of the steepness, incline, or grade of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Point A

In the context of graphs or models, a specific point that might denote a specific situation or condition in an analysis or illustration.

Point D

A specific point on a graph or in a dataset, often used in economics to denote either an equilibrium point or a point of interest in a graphical analysis.