When allocating service department costs, companies should use:
A. budgeted costs rather than actual costs, and a rate that combines variable and fixed costs.
B. budgeted costs rather than actual costs, and separate rates for variable and fixed costs.
C. actual costs rather than budgeted costs, and a rate that combines variable and fixed costs.
D. actual costs rather than budgeted costs, and separate rates for variable and fixed costs.
E. a rate that is based on matrix theory.
Answer: B
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