Once the Amounts of the Service Department Allocations Have Been

question 22

Multiple Choice

Once the amounts of the service department allocations have been determined,a journal entry should be prepared to record the distributions,the result of which is:

• A)debit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• B)credit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• C)debit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.
• D)credit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

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Definitions:

Capital Owners

Individuals or entities that own assets used for the production of goods or services, which may include physical capital, financial capital, or intellectual property.

Excess Burden

The economic loss that society suffers as a result of taxes or subsidies that distort market decisions.

Tax

A mandatory monetary fee or different kind of tax that is charged to a taxpayer by a government entity to finance public spending.

Revenue Collected

Revenue Collected pertains to the total amount of money received by an organization, government, or business from various sources, such as sales, taxes, or services rendered.