Salvador Company has developed capacity standards. Information is as follows for a value-added activity:

Activity capacity acquired	60
Activity capacity used	50
Actual activity usage	30
Standard fixed activity rate	$2,000

The unused capacity variance is

a. $40,000 favorable.

b. $60,000 favorable.

c. $20,000 favorable.

d. There is no variance.

The volume variance is

a. There is no variance.

b. $60,000 unfavorable.

c. $40,000 unfavorable.

d. $20,000 unfavorable