1Which of the following should have the strongest cause and effect relationship with overhead costs?

a. Units of output.

b. Cost followers.

c. Cost drivers.

d. Non-value-added costs.

e. Value-added costs.

2. The difference between the revenue or cost projection that a person provides, and a realistic estimate of the revenue or cost, is called:

a. participative budgeting.

b. passing the buck.

c. budgetary slack.

d. resource allocation processing

e. false budgeting.

3. A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of:

a. $270,000

b. $290,000.

c. None of the answers is correct

d. $210,000.

e. $350,000.

4. The sales-volume variance equals

a. (actual sales volume - budgeted sales volume) x actual contribution margin.

b. (actual sales price - budgeted sales price) x fixed-overhead volume variance

c. (actual sales price - budgeted sales price) x budgeted sales volume.

d. (actual sales volume - budgeted sales volume) x actual sales price.

e. (actual sales volume - budgeted sales volume) x budgeted sales price.