solman - practice set

Chapter 3—Predetermined Overhead Rates, Flexible Budgets, and Absorption/Variable Costing

LEARNING OBJECTIVES

LO 1
Why and how are overhead costs allocated to products and services?
LO 2
What causes underapplied or overapplied overhead, and how is it treated at the end of a period?
LO 3
What impact do different capacity measures have on setting predetermined overhead rates?
LO 4
How are the high-low method and least squares regression analysis used in analyzing mixed costs?
LO 5
How do managers use flexible budgets to set predetermined overhead rates?
LO 6
How do absorption and variable costing differ?
LO 7
How do changes in sales or production levels affect net income computed under absorption and variable costing?

QUESTION GRID

True/False

Difficulty Level

Learning Objectives

Easy
Moderate
Difficult
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6
LO 7
1
X

x

2
X

x

3
X

x

4
X

x

5
X

x

6
X

x

7
X

x

8
X

x

9
X

x

10
X

x

11
X

x

12
X

x

13
X

x

14
X

x

15
X

x

16
X

x

17
X

x

18
X

x

19
X

x

20
X

x

21 x

x

22 x

x

23 x

x

24 x

x

25 x

x

26 x

x

27 x

x

Difficulty Level
Learning Objectives

Easy
Moderate
Difficult
LO 1
LO 2
LO 3
LO 4
LO 5
LO 6
LO 7
28

x

x

29 x

x