Final answer:
Variable support department costs for performance evaluation are typically calculated using either Actual rate x Actual usage or Budgeted rate x Actual usage, depending on whether actual spending or budget conformity is being assessed.
Step-by-step explanation:
The calculation method for the allocation of variable support department costs in the context of performance evaluation would typically depend on what the business aims to analyze. If the focus is on actual resource utilization and spending, then Actual rate x Actual usage would be used. This provides insight into how well the department managed its budget in relation to actual activity levels.
On the other hand, if the objective is to assess performance against a plan or budget, then Budgeted rate x Actual usage could be more appropriate as it reflects the planned efficiency against the real consumption of resources. Using Budgeted rate x Budgeted usage would compare planned costs with planned usage, which may be suitable for budget formulation but not for evaluating actual performance.
Lastly, Actual rate x Budgeted usage is less commonly used for performance evaluation as it mixes actual cost rates with hypothetical planned usage, making it difficult to draw meaningful conclusions about performance.