The overhead allocation base should be the cost driver of manufacturing overhead costs. true or false

That statement is true

Explanation:

The overhead allocation base is a method to count the overall cost of overhead by calculating the usage of the assets that involved in the production. This is what referred to as the 'cost driver;

This will include things such as the number of hours used by the machine, the amount of electricity used by the machines, the number of land occupied by the machine, etc.