Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a
A) debit to Manufacturing Overhead for $24,000.
B) credit to Work in Process-Cutting Department for $15,000.
C) debit to Work in Process for $15,000.
D) credit to Manufacturing Overhead for $24,000.

Question

Quizplus · Accepted Answer

The entry to assign overhead will show a credit to Manufacturing Overhead for $24,000, calculated as (1,800 + 3,000) machine hours * $5 per machine hour.

Price Manufacturing Assigns Overhead Based on Machine Hours