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 using the proration approach based on overhead allocated?
A) 
B) 
C) 
D) 
E) 
Correct Answer:

Verified
Correct Answer:
Verified
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