In some variations of normal costing,organisations use budgeted rates to assign direct costs as well as indirect costs to jobs.

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In normal costing, budgeted rates are used to assign direct costs (such as direct materials and direct labor) as well as indirect costs (such as overhead) to jobs. The budgeted rates are based on estimates of the costs to be incurred during the period, and are then used to allocate those costs to the jobs based on the actual usage of resources by each job.

In Some Variations of Normal Costing,organisations Use Budgeted Rates to Assign