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

question 21

Multiple Choice

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) .
Before disposition of under/overallocated overhead, the following information was available:

-What is the journal entry used to write-off the difference between allocated and actual overhead directly to cost of goods sold?

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Definitions:

Bimetallic

Pertaining to an object made of two different metals bonded together, often used in temperature sensing applications.

Motor Starter

An electrical device that controls the use of electrical power to equipment, usually an electric motor, by initiating the stop/start command.

Magnetic Contractor

A specialized type of relay used in high power applications to switch on and off electric currents.

Electronic Motor Overload Units

Devices that protect motors from drawing too much current, potentially causing overheating or failure.