Price Company Assigns Overhead Based on Machine Hours

question 126

Multiple Choice

Price Company assigns overhead based on machine hours. The Milling Department logs 2400 machine hours and Cutting Department shows 4000 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 $32000.
• B) credit to Work in Process-Cutting Department for $20000.
• C) debit to Work in Process for $20000.
• D) credit to Manufacturing Overhead for $32000.

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