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Commerce · Q667

Costing

Graduate and Post Graduate · Commerce · question 667

Q667

If budgeted indirect cost base is 115 and budgeted cost allocation base is 830 per hour, then annual indirect cost (budgeted) will be

A.
$93,450
B.
$94,560
C.
$96,450
D.
$95,450
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= 830 = $95,450
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