If the predetermined overhead allocation rate is 75% of direct labor cost, and the Assembly Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department:
$\begin{array}{llr}
\text { Factory Overhead} &15,000\
\text { Wock in Process Inventory Assembly Dept } &&15,000\
\end{array}$

Question

If the predetermined overhead allocation rate is 75% of direct labor cost, and the Assembly Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department:
$\begin{array}{llr}
  \text {  Factory Overhead} &15,000\
 \text { Wock in Process Inventory Assembly Dept } &&15,000\
\end{array}$

Quizplus · Accepted Answer

The Answer of If the predetermined overhead allocation rate is 75% of direct labor cost, and the Assembly Department's direct labor cost for the reporting period is $20,000, the following entry would be made to record the allocation of overhead to the products processed in this department:
$\begin{array}{llr}
  \text {  Factory Overhead} &15,000\
 \text { Wock in Process Inventory Assembly Dept } &&15,000\
\end{array}$