What is the definition of unused capacity variance?
A)the difference in costs between activity availability and activity usage
B)the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used
C)the difference in costs between practical capacity of activity and the standard capacity of the activity
D)the difference in costs between practical capacity and actual capacity

Question

Quizplus · Accepted Answer

Unused capacity variance refers to the difference in costs between the activity availability (what is available) and the activity usage (what is actually used).

What Is the Definition of Unused Capacity Variance