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:

Question

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The overhead allocated to the Painting Department would be $70,000 ($20,000 x 350%), and this amount would be recorded with a journal entry debiting Work in Process and crediting Manufacturing Overhead.

If the Predetermined Overhead Allocation Rate Is 350% of Direct