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If budgeted annual indirect cost is 850000 and budgeted annual quantity...

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Costing
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If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be

Answer & Solution
Correct Answer: Option B
Budgeted indirect cost = Budgeted annual indirect cost ÷ Budgeted annual quantity of cost allocation base
= $850000 ÷ $7500 = 113.33 per piece
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