When using the dual-rate method, the fixed cost allocation is based on ________.
A) actual rate
B) budgeted usage
C) incremental cost allocation
D) prime cost allocation

Question

Quizplus · Accepted Answer

The dual-rate method allocates fixed costs based on two separate rates: one for budgeted usage and one for actual usage. The fixed cost allocation is based on the budgeted usage rate, which means that Choice B (budgeted usage) is the correct answer.

When Using the Dual-Rate Method, the Fixed Cost Allocation Is