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Commerce · Q637

Costing

Graduate and Post Graduate · Commerce · question 637

Q637

If budgeted annual indirect cost is 60000, budgeted annual quantity of cost allocation base is 3600, then budgeted indirect cost rate will be

A.
15.67 per piece
B.
16.67 per piece
Answer
C.
14.67 per piece
D.
13.67 per piece

Answer: Option B

Solution

Answer: Option B
Solution:
Budgeted indirect cost rate = Budgeted annual indirect cost ÷ Budgeted annual quantity of cost allocation
= 3600 = 16.67 per piece