The Standard Cost Driver usage for variable overhead can be calculated as:
A) Split Cost / Actual Application Rate
B) Split Cost / Standard Application Rate
C) Actual Cost / Standard Application Rate
D) Standard Cost / Actual Application Rate
E) None of the above

Question

Quizplus · Accepted Answer

The correct terminology for calculating the Standard Cost Driver usage for variable overhead involves using the Standard Cost and dividing it by the Standard Application Rate, which is not an option provided in the choices above. The options given do not accurately describe the process for calculating the Standard Cost Driver usage for variable overhead.

The Standard Cost Driver Usage for Variable Overhead Can Be