Answer the Following Questions Using the Information Below

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