1. A cost that changes in total as output changes is a variable cost.

   True

   False

1. Managerial judgment is critically important in determining cost behavior.

   True

   False

1. The predetermined overhead rate is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver

   True

   False

1. If actual overhead is greater than applied overhead, the variance is called underapplied overhead.

   True

   False

1. The direct method of allocation recognizes all interactions among support departments.

   True

   False