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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