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

Multiple Choice

A. Overhead application is based on actual process hours incurred.

B. Overhead application is based on standard process hours allowed.

C. Only prime costs are considered to be product costs in a standard costing system.

D. Only variable overhead costs are applied to production.

E. A predetermined overhead rate is allowed only for fixed overhead.