Which of the Following Statements About Variable Overhead Costs Is

Multiple Choice

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.