Question: What is the final step in determining the overhead allocation rate? Divide the total variable overhead by the standard amount of the allocation base to
What is the final step in determining the overhead allocation rate?
Divide the total variable overhead by the standard amount of the allocation base to calculate the variable overhead rate per unit.
Multiply the total fixed overhead rate by the standard amount of the allocation base to calculate the variable overhead rate per unit.
Select the costallocation bases for allocating variable overhead costs and estimate the quantity of the bases.
Sum all variable overhead associated with each allocation base.
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