Magenta Company has developed capacity standards. The following information is provided by Magenta: $\begin{array}{lr}
\text { Standard cost of the activity capacity acquired } & \$ 125,000 \
\text { Standard cost of the activity capacity used } & 90,000 \
\text { Standard onst of the actial activity } & 100,000
\end{array}$
The volume variance is:
A)$15,000 unfavorable.
B)$35,000 unfavorable.
C)$25,000 unfavorable.
D)$10,000 unfavorable.

Question

Quizplus · Accepted Answer

The volume variance is calculated as the difference between the standard cost of the activity capacity acquired and the standard cost of the activity capacity used: $125,000 - $90,000 = $35,000 unfavorable.

Magenta Company Has Developed Capacity Standards The Volume Variance Is: A)$15,000 Unfavorable

Magenta Company Has Developed Capacity Standards The Volume Variance Is:
A)$15,000 Unfavorable