Final answer:
The budgeted indirect cost rate is calculated by dividing the budgeted indirect costs by the budgeted quantity of the cost allocation base.
Step-by-step explanation:
The statement is true. The budgeted indirect cost rate is calculated by dividing the budgeted indirect costs by the budgeted quantity of the cost allocation base. This rate helps in determining the indirect costs associated with the production of goods or services, which are not easily traceable to specific products or activities. For example, if a company budgets $100,000 for indirect costs and expects a budgeted quantity of 10,000 units for the cost allocation base, the budgeted indirect cost rate would be $10 per unit ($100,000 / 10,000 units).