Gia Machine Shop Uses a Predetermined Overhead Allocation Rate of $63.20

question 15

Multiple Choice

Gia Machine Shop uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, Gia completed Job A23 which utilized 15 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?

• A)Debit Finished Goods Inventory $948, credit Manufacturing Overhead $948
• B)Debit Manufacturing Overhead $63.20, credit Work-in-Process Inventory $63.20
• C)Debit Work-in-Process Inventory $948, credit Manufacturing Overhead $948
• D)Debit Cost of Goods Sold $63.20, credit Finished Goods Inventory $63.20

---

Definitions:

Real GDP Per Person

An economic metric that measures the value of all goods and services produced within a country in a specified period, adjusted for inflation and divided by the population.

Inward-Oriented Policy

An economic policy strategy that emphasizes domestic industry protection and self-sufficiency over global trade.

Trade Restrictions

Measures imposed by governments to regulate or limit the exchange of goods and services across borders.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.