If the predetermined overhead allocation rate is 350% of direct labor cost and the Painting Department's direct labor cost for the reporting period is $20,000,the following entry would record the allocation of overhead to the products processed in this department:
Goods in Process Inventory,Painting Dept………………… 70,000
Factory Overhead.………………………. 70,000

Question

Quizplus · Accepted Answer

The predetermined overhead allocation rate is 350% of direct labor cost, which means the overhead allocation would be 350% of the direct labor cost of $20,000, totaling $70,000. The entry provided correctly reflects the allocation of overhead to goods in process inventory for the Painting Department.

If the Predetermined Overhead Allocation Rate Is 350% of Direct