Price Manufacturing Assigns Overhead Based on Machine Hours

question 196

Multiple Choice

Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a

• A) debit to Manufacturing Overhead for $24,000.
• B) credit to Work in Process-Cutting Department for $15,000.
• C) debit to Work in Process for $15,000.
• D) credit to Manufacturing Overhead for $24,000.

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