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:

Provisions

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Lewis and Clark Expedition

The early 19th-century expedition commissioned by President Thomas Jefferson to explore the newly acquired western territory of the United States, led by Meriwether Lewis and William Clark.

Gibbons V. Ogden

A landmark decision by the U.S. Supreme Court in 1824 that held that the power to regulate interstate commerce was granted to Congress by the Commerce Clause of the Constitution.