Answer the following questions using the information below:
Because the Abernathy Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) was different from the actual amount incurred ($225,000) .
-What is the journal entry used to write off the difference between allocated and actual overhead directly to cost of goods sold?
Definitions:
Income Elasticity of Demand
An indicator of the variability in a product's demand based on shifts in consumer income.
Price Elasticity of Supply
An indicator of the sensitivity of the amount of a product supplied to fluctuations in its price.
Price Elasticity of Supply
A measure of how much the quantity supplied of a good responds to a change in the price of that good, indicating the producers' ability to adjust supply when prices change.
Inelastic Demand
A situation where the demand for a good or service does not significantly change in response to a change in price.
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