If the predetermined overhead allocation rate is 250% of direct labor cost and the Finishing 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

Quizplus · Accepted Answer

The allocation of overhead to the products processed in the Finishing Department would be 250% of its direct labor cost, which is $20,000 x 2.5 = $50,000. An entry would be made to allocate this amount of overhead to the products.

If the Predetermined Overhead Allocation Rate Is 250% of Direct