Which of the following statements about variable overhead costs is true?
A) The underlying model for control and product-costing purposes is the same for variable overhead.
B) The amount of variable overhead applied to production is a function of the denominator output volume and the actual quantity of the cost-allocation base (cost driver) used to apply overhead.
C) The total variable overhead cost variance can be decomposed into a production-volume variance and a flexible-budget variance.
D) For control purposes, the actual quantity of the cost-allocation base (cost driver) is used.
E) Standard costs for variable overhead can be used for control, but not product-costing, purposes.

Question

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The Answer of Which of the following statements about variable overhead costs is true?
A) The underlying model for control and product-costing purposes is the same for variable overhead.
B) The amount of variable overhead applied to production is a function of the denominator output volume and the actual quantity of the cost-allocation base (cost driver) used to apply overhead.
C) The total variable overhead cost variance can be decomposed into a production-volume variance and a flexible-budget variance.
D) For control purposes, the actual quantity of the cost-allocation base (cost driver) is used.
E) Standard costs for variable overhead can be used for control, but not product-costing, purposes.

Which of the Following Statements About Variable Overhead Costs Is