Q675
Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate
A.
expected indirect cost rate
B.
expected direct cost rate
C.
budgeted indirect cost rate
AnswerD.
budgeted direct cost rate
Answer: Option C
Solution
Answer: Option C
Solution:
Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate budgeted indirect cost rate. The budgeted indirect cost rate formula is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base.