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

question 12

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) .These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.
Before disposition of under/overallocated overhead,the following information was available:

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

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Definitions:

World Community

A term referring to the international aggregation of nations and peoples, often used to highlight global cooperation and interdependence.

Cold War

A period of geopolitical tension between the Soviet Union and the United States, along with their respective allies, from the end of World War II in 1945 until the dissolution of the Soviet Union in 1991, characterized by propaganda, espionage, and proxy wars but avoiding direct military conflict.

Iran-Contra Scandal

A political scandal in the United States during the 1980s involving the clandestine sale of weapons to Iran to fund Contra rebels in Nicaragua, contrary to U.S. law.

Abroad

In a country other than one's own; experiencing or traveling to foreign countries.