Which of the Following Statements Is/are Correct Concerning the Application

Multiple Choice

Which of the following statements is/are correct concerning the application of overhead in a standard costing system driven by process hours?

A) A predetermined overhead rate is allowed only for fixed overhead.
B) Overhead application is based on standard process hours allowed.
C) Overhead application is based on actual process hours incurred.
D) Only prime costs are considered to be product costs in a standard costing system.
E) Only variable overhead costs are applied to production.