09 Jan True-False ____1. Budgeted overhead cost rates can
True-False ____1. Budgeted overhead cost rates can be expressed as anamount per unit of output or per unit of input. ____2. There is no fundamental difference between the budgetedvariable-overhead cost rate per unit of input and the budgetedprice of individual direct materials. ____3. The variable-overhead spending varianceis unfavorable if the actual variable overhead cost rate per unitof input (the cost-allocation base) is greater than the budgetedvariable overhead cost rate per unit of input. ____4. The variable overhead efficiency variance is computedsimilarly to the direct-labor efficiency variance, and the meaningand interpretation of these variances are basically the same. ____5. If variable overhead is under allocated,this means the flexible-budget variance for variable overhead isunfavorable. ____6. The total amount of budgeted fixed manufacturing overheadis affected by the production-denominator level chosen. ____7. The fixed manufacturing overhead costper unit is inversely related to the production-denominatorlevel. ____8. The production-volume variance is zero if actual outputproduced is equal to the production-denominator level. ____9.The production-volume variance is generally a good measureof the operating income forgone by having unused capacity. ____10. In 2-variance analysis of overhead costs, there is onlyone spending variance. ____11.Computing variances for fixed setup costs under an ABCsystem parallels the computation of variances for fixed overheadcosts under a non-ABC system. . . .
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