If the Predetermined Overhead Allocation Rate Is 250% of Direct $\begin{array}{llr} \text {Work in Process Inventory, Finishing Dept. } &50,000\\ \text { Factory Overhead } &&50,000\\\end{array}$

question 122

True/False

If the predetermined overhead allocation rate is 250% of direct labor cost and the Finishing Department's direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department:
$\begin{array}{llr} \text {Work in Process Inventory, Finishing Dept. } &50,000\\ \text { Factory Overhead } &&50,000\\\end{array}$

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Definitions:

Capitalism

An economic system where the means of production are privately owned and operated for profit.

Socialism

An economic and political system where the means of production, distribution, and exchange are owned or regulated by the community as a whole, advocating for wealth and power distribution.

Modes of Production

The variety of ways that societies organize the production, distribution, and consumption of goods and services.

Marx's Theory

Represents the body of thought created by Karl Marx, focusing on the critique of capitalism, the class struggle, and the advocacy for a classless society.