Which of the Following Statements About Variable Overhead Costs Is

question 44

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.

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