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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 used
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 used | 30 |
Standard fixed activity rate | $2,000 |
The unused capacity variance is
a.There is no variance.
b.$60,000 favorable.
c.$40,000 favorable.
d.$20,000 favorable.
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