The use of a single indirectcost rate is more likely to:
undercost highvolume simple products.
undercost lowerpriced products.
All products will be undercosted.
undercost lowvolume complex products.
The budgeted MOH rate for each cost pool is computed as:
budgeted annual MOH costs divided by budgeted actual quantity of cost allocation base.
budgeted annual quantity of cost allocation base divided by budgeted annual MOH costs.
budgeted annual MOH costs divided by budgeted annual quantity of cost allocation base.
actual annual MOH costs divided by budgeted annual quantity of cost allocation base.
The budgeted MOH rate for each cost pool is computed as:
budgeted annual MOH costs divided by budgeted actual quantity of cost allocation base.
budgeted annual quantity of cost allocation base divided by budgeted annual MOH costs.
budgeted annual MOH costs divided by budgeted annual quantity of cost allocation base.
actual annual MOH costs divided by budgeted annual quantity of cost allocation base.
