1. Underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs. True False

2. If the variable expense per unit is $12 and the selling price per unit is $40. Then the contribution margin ratio is 70%. True False

3. At the break-even point: Sales - Variable expenses = Fixed expenses. True False

4. Variable manufacturing overhead costs are treated as period costs under both absorption and variable costing. True False

5. One benefit of budgeting is that it coordinates the activities of the entire organization. True False

6. Future costs that do not differ among the alternatives are not relevant in a decision. True False

7. An avoidable cost is a cost that can be eliminated (in whole or in part) as a result of choosing one alternative over another. True False