select a business; preferably one you are knowledgeable about and complete the following:

1. Decide which allocation base (direct labor hours, direct materials, machine hours, etc.) best reflects the overall level of activity in the business (see exhibit 19-1) and should be used to allocate overhead (40 points). PLEASE READ THE DEFINITION OF ALLOCATION BASE FROM THE TEXTBOOK
2. Give examples of costs that are fixed and variable with respect to small changes in the allocation base (measure of activity) you have chosen (40 points). PLEASE READ THE DEFINITION AND EXAMPLES OF FIXED AND VARIABLE EXPENSES.