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Answer the Following Questions Using the Information Below

Question 53

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:
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
-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

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