Prepare the journal entry to allocate manufacturing overhead

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Reference no: EM13827194

Alba foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.

1. Compute Alba's predetermined overhead allocation rate (formula needed)

2. Prepare the journal entry to allocate manufacturing overhead. (Debits first then credits)

3. Post the manufacturing overhead transactions to the Manufacturing overhead T-ACCOUNT: is manufacturing overhead underallocated or overallocated? By how much??

4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. (Debits first, then credits) Does your entry increase or decrease cost of goods sold?

Reference no: EM13827194

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