Using normal costing the amount of supervisory salaries to allocate is determined by calculating
A)actual direct-cost rates times actual quantities of direct-cost inputs.
B)actual indirect-cost rates times actual quantities of cost-allocation bases.
C)actual direct-cost rates times budgeted quantities of input.
D)budgeted indirect-cost rates times actual quantities of cost-allocation bases.
E)budgeted indirect-cost rates times budgeted quantities of cost-allocation bases.

Question

Quizplus · Accepted Answer

Normal costing uses budgeted indirect-cost rates and actual quantities of cost-allocation bases to allocate costs.

Using Normal Costing the Amount of Supervisory Salaries to Allocate