Michael Paints Used a Predetermined Overhead Allocation Rate to Allocate

question 31

Multiple Choice

Michael Paints used a predetermined overhead allocation rate to allocate $75,000 and $65,000 of indirect costs to Coloring Department and Mixing Department, respectively. The journal entry to record the allocation of overhead costs to the Coloring Department is:

• A)debit Manufacturing Overhead, $75,000; credit Work-in-Process Inventory-Mixing, $75,000.
• B)debit Work-in-Process Inventory-Coloring, $75,000; credit Manufacturing Overhead, $75,000.
• C)debit Work-in-Process Inventory-Coloring, $65,000; credit Manufacturing Overhead, $65,000.
• D)debit Manufacturing Overhead, $65,000; credit Work-in-Process Inventory-Mixing, $65,000.

---

Definitions:

Continuity

The concept or state of uninterrupted flow or progression, often discussed in the context of developmental psychology and the gradual development of individuals over time.

Simplicity

The quality or condition of being easy to understand or do, not complicated.

Similarity

The degree to which two or more entities share common attributes, characteristics, or qualities.

Perceptual Tendency

The inclination to perceive or interpret information in a particular way, often influenced by past experiences and biases.