Answer the Following Questions Using the Information Below

question 16

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:

-A favorable production-volume variance indicates that the company:

• A)has good management
• B)has allocated more fixed overhead costs than budgeted
• C)has a total economic gain from using excess capacity
• D)should increase capacity

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Definitions:

Ethical Understanding

Involves recognizing, pondering, and responding to ethical issues and dilemmas in a moral and considerate manner.

Greed

An intense and selfish desire for something, especially wealth, power, or food, often at the expense of others' needs or feelings.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled.

Boards of Directors

A group of individuals elected by shareholders to oversee and guide the management and strategic direction of a corporation.