An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called
A. unadjusted budget rate approach
B. adjusted allocation rate approach
C. unadjusted allocation rate approach
D. adjusted budget rate approach
Answer: Option B
Solution (By Examveda Team)
An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called adjusted allocation rate approach. The adjusted allocation-rate approach restates or corrects estimated overhead costs booked throughout the year, so that the actual overhead costs are recorded properly.
Join The Discussion