Answer the Following Questions Using the Information Below

question 53

Multiple Choice

Answer the following questions using the information below:
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March:

-An unfavorable production-volume variance:

• A)is not a good measure of a lost production opportunity
• B)measures the total economic gain or loss due to unused capacity
• C)measures the amount of extra fixed costs planned for but not used
• D)takes into account the effect of additional revenues due to maintaining higher prices

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