Livingston Company Has Developed Capacity Standards

Multiple Choice

Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0-
Standard cost of the actual activity used 50,000
The volume variance is

A) $10,000 unfavorable.
B) $10,000 favorable.
C) $60,000 favorable.
D) $60,000 unfavorable.