# Consider the following information: A company has 5 departments; M and N (both operating) and R,...

###### Question:

Consider the following information: A company has 5 departments; M and N (both operating) and R, S and T (all three supporting).

Total secondary allocation (including own indirect costs) for department M and N is 250 and 300, respectively.

Primary allocation is 200 and 280 for department M and N, respectively.

Allocation bases to assign indirect costs to products are kg of paint (25kg) for department M and number of units produced (10units) for department N. What is the indirect cost rate for the M department?

Select one:

a. €10/kg

b. €10/unit

c. €18/kg

d. €8/kg

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