Variable service department costs should be charged to operating departments at the end of the period according to the formula:

A) Budgeted rate × Budgeted activity.
B) Budgeted rate × Actual activity.
C) Actual rate × Actual activity.
D) Budgeted total cost × Percentage of peak-period capacity required.

Variable Service Department Costs

Expenses in a service department that fluctuate in direct proportion to changes in the level of service activity or volume.

Budgeted Rate

A predetermined rate, often used for allocating costs or resources in a budget based on estimated expenditures.

Actual Activity

The real, measured amount of work performed or the level of production achieved over a specified period of time.