Adjusted allocation-rate approach

Adjusted allocation-rate approach is a restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Adjusted allocation-rate approach. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates.