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Using Normal Costing the Amount of Supervisory Salaries to Allocate

Question 56

Multiple Choice

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.

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