Answer the Following Questions Using the Information Below

question 100

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 of $20,000 indicates that the company has:

• A)unused fixed manufacturing overhead capacity
• B)overallocated $20,000 of fixed manufacturing overhead costs
• C)$20,000 more capacity than needed
• D)an economic loss of $20,000 from selling fewer products than planned

---

Definitions:

Compounded Continuously

Pertains to the situation where interest is added to the principal balance of an investment, loan, etc., at an infinite number of times within a specified time period.

Balance

The equality between the sum of the debits and credits in an account, or the stability between opposing forces.

Compounded Annually

Refers to interest calculated once a year on the principal, including any previously earned interest.

Balance

In mathematics, the state in which both sides of an equation or an inequality have equal values or weights.