Question: What is the first step in determining the overhead allocation rate? Divide the total variable overhead by the standard amount of the allocation base to

What is the first 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.
Sum all variable overhead associated with each allocation base.
Select the cost-allocation bases for allocating variable overhead costs and estimate the quantity of the bases.
Multiply the total fixed overhead rate by the standard amount of the allocation base to calculate the variable overhead rate per unit.

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