Which of the following statements about variable overhead costs is true?

Multiple Choice

• The underlying model for control and product-costing purposes is the same for variable overhead.

• 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.

• The total variable overhead cost variance can be decomposed into a production-volume variance and a flexible-budget variance.

• For control purposes, the actual quantity of the cost-allocation base (cost driver) is used.

• Standard costs for variable overhead can be used for control, but not product-costing, purposes.