Overhead Allocation

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?

The overhead absorption rate is calculated using the budgeted overheads and the budgeted production. Do watch my free lectures on this. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.