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

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