Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by

A. budgeted direct cost rate

B. budgeted indirect cost rate

C. expected indirect cost rate

D. direct budget percentage

Answer: Option B

Solution(By Examveda Team)

Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by 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.