Livingston Company Has Developed Capacity Standards

Multiple Choice

Livingston Company has developed capacity standards. Information is as follows: Standard cost of the activity capacity acquired $250,000
Standard cost of the activity capacity used 200,000
Standard cost of the actual activity used 220,000
The unused capacity variance is

A) There is no variance.
B) $20,000 favorable.
C) $30,000 favorable.
D) $50,000 favorable.