Use the Information Below to Answer the Following Question(s)

question 159

Multiple Choice

Use the information below to answer the following question(s) .Because the Abernathy Company used a budgeted indirect cost allocation rate for its manufacturing operations, the amount allocated ($200,000) was different from the actual amount incurred ($225,000) .These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.Before disposition of under/overallocated overhead, the following information was available:

-What is the journal entry Abernathy Company should use to write-off the difference between allocated and actual overhead directly to cost of goods sold?

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Definitions:

Double-Blind Study

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias in research results.

Experimental Design

A procedure in research for testing hypotheses where one or more variables are manipulated to determine their effect on a dependent variable.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its effect on the dependent variable.

Random Assignment

A method used in experiments where participants are allocated to different groups in a manner that is determined by chance.