Fixed Service Department Costs Should Be Charged to Operating Departments

Multiple Choice

Fixed service department costs should be charged to operating departments at the end of the period according to which one of the following the formulas?

A) Budgeted rate x Budgeted activity.
B) Budgeted rate x Actual activity.
C) Actual rate x Actual activity.
D) Budgeted total cost x Percentage of peak-period capacity required.