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