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

question 136

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 using the proration approach?

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Definitions:

Automatic-Perfection Period

A specified timeframe following the attachment of a security interest during which the interest is considered perfected without filing.

Perfected

In legal and financial contexts, refers to having completed all necessary legal steps to enforce rights regarding a security interest against third parties.

Proceeds

The total amount of money or assets derived from a transaction, such as the sale of goods, property, or a business activity.

Collateral

An asset pledged as security for the repayment of a loan, forfeitable in the event of a default.