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

Quizplus · Accepted Answer

To calculate the amount of overhead allocated to the Painting Department's products, we need to multiply the direct labor cost by the predetermined overhead allocation rate:

$20,000 x 350% = $70,000

Therefore, the entry to record the allocation of overhead would be:

Debit: Work in Process Inventory - Painting Department $70,000
Credit: Manufacturing Overhead $70,000

If the Predetermined Overhead Allocation Rate Is 350% of Direct