If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be
A. 112.34 per piece
B. 113.33 per piece
C. 111.34 per piece
D. 110.34 per piece
Answer: Option B
Solution(By Examveda Team)
Budgeted indirect cost = Budgeted annual indirect cost ÷ Budgeted annual quantity of cost allocation base= $850000 ÷ $7500 = 113.33 per piece
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