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:

-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