I'm getting a few questions regarding the project. The project requires you to think about and apply concepts from chapters 3, 4 and 6. The company is currently allocating overhead by the method described. The owner is questioning whether there is a better to allocate. It is not asking you to allocate overhead. You have historical data, 24 months (2015 and 2016). From this data, you can assess whether the current cost driver is the best, if not which single cost driver would you use?

Also, you have the possibility of multiple cost pools and drivers. If you use multiple cost pools, how many would you use and what cost drivers would use for each pool.

I would suggest your report, review both of these options and make a recommendation for one (and the rate), but include discussion of both options and how and why you made your decision.