Question
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
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 volume variance is
a.$60,000 unfavorable.
b.There is no variance.
c.$20,000 unfavorable.
d.$40,000 unfavorable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
10th Edition
0131457349, 978-0131457348
