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

question 32

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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:
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 using the proration approach based on overhead allocated? A)    B)    C)    D)    E)
-What is the journal entry Abernathy Company should use to write-off the difference between allocated and actual overhead using the proration approach based on overhead allocated?


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