For normal costing,even though the indirect-cost rate is based on actuals,indirect costs are allocated to products based on the normal capacity of the cost-allocation base.

Question

Quizplus · Accepted Answer

Normal costing uses a predetermined indirect-cost rate, not actuals, and allocates costs based on the budgeted or normal capacity of the cost-allocation base.

For Normal Costing,even Though the Indirect-Cost Rate Is Based on Actuals,indirect