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If the Predetermined Overhead Allocation Rate Is 225% of Direct

Question 42

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If the predetermined overhead allocation rate is 225% of direct labor cost,and the Mixing Department's direct labor cost for the reporting period is $10,000,the following entry would be made to record the allocation of overhead to the products processed in this department:
Goods in Process Inventory,Mixing Dept …… 225,000
Factory Overhead……………………….. 225,000

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