Question

Dalrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $ 12 comma 500. The budgeted number of nozzles to be inserted is 10 comma 000. What is the budgeted indirect cost allocation rate for this​ activity?

Answer 1

$1.2

Step-by-step explanation:

Budgeted indirect total cost/ budgeted number of nozzles .

$12,000/$10,000

$1.2

Therefore the budgeted indirect cost allocation rate for this​ activity is $1.2