ch14
Student: ___________________________________________________________________________
1.
Cost behavior for variable overhead is more difficult to predict than direct material or direct labor cost
behavior because:
A. Multiple cost drivers are involved with variable overhead.
B. Direct material and direct labor contain no semi-variable component.
C. The variable portion of overhead must first be separated from the fixed portion.
D. Answer A and answer B are both correct.
E. Answers A, B and C are all correct.
2.
Finding a single cost driver that changes in the same proportion as variable factory overhead costs is:
3.
An activity-based cost driver applies factory overhead to products or services according to the:
4.
Many firms break the variable factory overhead flexible budget variance down into two detailed
variances that measure:
5.
Which of the following factors should
not be considered when deciding whether to investigate a
variance?
A. Magnitude of the variance.
B. Trend of the variance over time.
C. Whether the variance is favorable or unfavorable.
D. Cost of investigating the variance.
E. Likelihood that the variance will recur in the future.
6.
A standard costing system will produce the same income as an actual costing system when standard cost
variances are assigned to:
1
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7.
Many firms feel a strong obligation to establish and use a standard rate for fixed factory overhead
because of:

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- Spring '08
- any
- overhead spending variance, C. Variable
-
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