Once the amounts of the service department allocations have been determined,a journal entry should be prepared to record the distributions,the result of which is:
A)debit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
B)credit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
C)debit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.
D)credit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

Question

Quizplus · Accepted Answer

The correct answer is that the journal entry to record the distribution of service department allocations results in debit balances in the Factory Overhead accounts of the production departments. This is because the allocations represent additional overhead costs assigned to these departments, increasing their total overhead costs.

Once the Amounts of the Service Department Allocations Have Been