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
Correct Answer:

Verified
Correct Answer:
Verified
Q29: Answer the following questions using the
Q49: All unfavorable overhead variances decrease operating income
Q50: Answer the following questions using the information
Q51: Excess capacity is a sign:<br>A)that capacity should
Q52: Answer the following questions using the information
Q54: In a standard costing system, a cost-allocation
Q55: The variable overhead efficiency variance can be
Q58: Answer the following questions using the information
Q60: If the production planners set the budgeted
Q150: Answer the following questions using the