Under activity-based costing, selling and administrative expenses may be allocated using which of the following formulas for activity rate?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 12E: For the following activities and their associated resources, identify the following: (1) a cost...
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Under activity-based costing, selling and administrative expenses may be allocated using which of the following formulas for activity rate?
a.Activity Rate = Budgeted Activity Cost × Total Activity-Base Usage
b.Activity Rate = Budgeted Activity Cost + Total Activity-Base Usage
c.Activity Rate = Budgeted Activity Cost – Total Activity-Base Usage
d.Activity Rate = Budgeted Activity Cost ÷ Total Activity-Base Usage 
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