True-False

____1. Budgeted overhead cost rates can be expressed as an amount per unit of output or per unit of input.

____2. There is no fundamental difference between the budgeted variable-overhead cost rate per unit of input and the budgeted price of individual direct materials.

____3. The variable-overhead spending variance is unfavorable if the actual variable overhead cost rate per unit of input (the cost-allocation base) is greater than the budgeted variable overhead cost rate per unit of input.

____4. The variable overhead efficiency variance is computed similarly to the direct-labor efficiency variance, and the meaning and interpretation of these variances are basically the same.

____5. If variable overhead is under allocated, this means the flexible-budget variance for variable overhead is unfavorable.

____6. The total amount of budgeted fixed manufacturing overhead is affected by the production-denominator level chosen.

____7. The fixed manufacturing overhead cost per unit is inversely related to the production-denominator level.

____8. The production-volume variance is zero if actual output produced is equal to the production-denominator level.

____9.The production-volume variance is generally a good measure of the operating income forgone by having unused capacity.

____10. In 2-variance analysis of overhead costs, there is only one spending variance.

____11.Computing variances for fixed setup costs under an ABC system parallels the computation of variances for fixed overhead costs under a non-ABC system.