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In the course of overhead allocation, are we allocate actual overhead cost or budgeted overhead cost?
Understand that in overhead apportionment, we allocate “budgeted” overhead cost between cost center. Im just not clear about the first step of calculating the overhead absorption rate – which is allocation overhead. In this first step, do we directly charge the “budgeted cost” or “actual cost” or “both” to a cost unit?
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