Actual indirect-cost rate
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Actual indirect-cost rate is actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Actual indirect-cost rate. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool.
