The correct answer is: C. budgeted indirect cost rate.
A budgeted indirect cost rate is calculated by dividing the budgeted annual indirect costs by the budgeted annual quantity of the cost allocation base. The cost allocation base is a measure of activity that is used to assign indirect costs to products or services. Common cost allocation bases include direct labor hours, machine hours, and units produced.
The budgeted indirect cost rate is used to assign indirect costs to products or services. The indirect costs are assigned to products or services based on the amount of activity that each product or service consumes. For example, if the cost allocation base is direct labor hours, then the indirect costs would be assigned to products or services based on the number of direct labor hours that each product or service consumes.
The budgeted indirect cost rate is used in cost accounting to determine the cost of products or services. The cost of products or services is used in pricing, budgeting, and other financial decisions.