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

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.

Correct Answer:

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