Reference no: EM132893507

Problem 1: The controllable variance measures:

a. operating results at less than normal capacity

b. the efficiency of using variable overhead resources

c. operating results at more than normal capacity

d. control over fixed overhead costs

Problem 2: Traditional overhead allocations result in which of the following situations?

a. Overhead costs are assigned as period costs to manufacturing operations.

b. High-volume products are assigned too much overhead, and low-volume products are assigned too little overhead.

c. Low-volume products are assigned too much, and high-volume products are assigned too little overhead.

d. The resulting allocations cannot be used for financial reports.

Problem 3: The gross-margin format of the income statement:

a. is used with variable costing

b. is used with absorption costing

c. calculates contribution margin

d. distinguishes variable costs from fixed costs