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Commerce · Q671

Costing

Graduate and Post Graduate · Commerce · question 671

Q671

If budgeted indirect cost arte is 225 and budgeted cost allocation base is 750 per hour, then annual indirect cost (budgeted) would be

A.
$168,750
Answer
B.
$148,570
C.
$186,750
D.
$125,680

Answer: Option A

Solution

Answer: Option A
Solution:
Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation
= 750 = $168,750
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