allocation of fixed costs based on actual costs and actual output so it is not

Allocation of fixed costs based on actual costs and

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Diff: 2Objective: 4AACSB: Analytical thinking43) Explain two concerns when interpreting the production-volume variance as a measure of the economic cost of unused capacity. Diff: 2Objective: 4AACSB: Analytical thinking8.5 Objective 8.51) Which of the following statements is true of variable overhead costs?BDiff: 2Objective: 5AACSB: Analytical thinking2) Fixed overhead costs ________.CDiff: 1Objective: 5AACSB: Analytical thinking
3) When variable overhead spending variance is unfavorable, it can be safely assumed that ________.A) actual rate per unit of cost-allocation base is higher than budgeted rateB) actual quantity of cost-allocation base used is higher than budgeted quantityC) actual rate per unit of cost-allocation base is lower than budgeted rateD) actual quantity of cost-allocation base used is lower than budgeted quantityAnswer: ADiff: 2Objective: 5AACSB: Application of knowledge4) When fixed overhead spending variance is unfavorable, it can be safely assumed that ________.CDiff: 2Objective: 5AACSB: Application of knowledge

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