Chapter 9:

1. What is a static budget?
2. What is a flexible budget? How does a flexible budget differ from a static budget?

Chapter 10:

1. What four variances comprise the under- or overapplied overhead?
2. If factory overhead is overapplied for the period, would you expect the total of the overhead variances to be favorable or unfavorable?
3. Why is the term overhead efficiency variance a misnomer?
4. Under what circumstances would you expect the volume variable to be favorable? Under
5. Does the volume variance measure deviations in spending for fixed overhead spending?