Fixed Service Department Costs Should Be Charged to Operating Departments

question 9

Multiple Choice

Fixed service department costs should be charged to operating departments at the end of the period according to which one of the following the formulas?

• A)Budgeted rate x Budgeted activity.
• B)Budgeted rate x Actual activity.
• C)Actual rate x Actual activity.
• D)Budgeted total cost x Percentage of peak-period capacity required.

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