Question

Which of the following is a good volume-based measure to allocate variable overhead?

a. number of employees
b. units produced
c. square footage used

Answer 1

Units produced is a good volume-based measure to allocate variable overhead.

Step-by-step explanation:

The good volume-based measure to allocate variable overhead is b. units produced. This means that the number of units produced is used as a basis for allocating variable overhead costs. For example, if a company produces more units, it would incur higher variable overhead costs.