If the Predetermined Overhead Allocation Rate Is 245% of Direct $\begin{array}{llr} \text { Work in Process Inventory, Baking Dept. } &24,500\\ \text { Factory Overhead} &&24,500\\\end{array}$

question 13

True/False

If the predetermined overhead allocation rate is 245% of direct labor cost, and the Baking Department's direct labor cost for the reporting period is $10,000, the following entry would be made to record the allocation of overhead to the products processed in this department:
$\begin{array}{llr} \text { Work in Process Inventory, Baking Dept. } &24,500\\ \text { Factory Overhead} &&24,500\\\end{array}$

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Definitions:

Financial Statements

Papers that offer a summary of a company's financial status, encompassing the balance sheet, income statement, and cash flow statement.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, used to assess how efficient a company's management is at using its assets.

Capital Structure

The combination of borrowing (debt) and ownership (equity) capital employed by a firm to finance its activities and expansion.

Equity-Financed

The method of funding a business through the sale of shares, thus raising capital without incurring debt.