The First Step in Developing Variable Overhead Rates Is

question 40

Multiple Choice

The first step in developing variable overhead rates is

• A) consider the potential effect of variances.
• B) select homogeneous inputs for variable cost-allocation base(s).
• C) analyze and select homogeneous variable cost pools.
• D) compute the variable overhead cost-allocation rate(s).
• E) choose the budget period.

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