Author Question: The ________ approach carries the underallocated or overallocated amounts to overhead accounts in ... (Read 60 times)

rl · **on:** Jul 5, 2018

The ________ approach carries the underallocated or overallocated amounts to overhead accounts in the following year.

A) adjusted allocation-rate
B) proration
C) write-off to cost of goods sold
D) None of these answers are correct.

Question 2

Under the writeoff approach, the difference between Manufacturing Overhead Control and Manufacturing Overhead Allocated is adjusted in the ________.

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated (200,000) is different from the actual amount incurred (225,000).

Ending balances in the relevant accounts are:
Work-in-Process 10,000
Finished Goods 20,000
Cost of Goods Sold 170,000

A) Cost of Goods Sold account
B) Work-in Process account
C) Manufacturing Overhead account
D) Miscellaneous Expenses account