Terrace Manufacturing assigns overhead based on machine hours using an overhead rate of $12 per machine hour. Terrace has two departments, the…
Terrace Manufacturing assigns overhead based on machine hours using an overhead rate of $12 per machine hour. Terrace has two departments, the Cutting Department and the Assembly Department. The Cutting Department logs 4,800 machine hours and Assembly Department shows 8,000 machine hours for the period. The entry to assign overhead will show
- A
- :
- debit to Manufacturing Overhead for $153,600.
- B
- :
- debit to Work in Process – Assembly for $57,600.
- C
- :
- credit to Manufacturing Overhead for $153,600.
- D
- :
- credit to Work in Process – Cutting for $96,000.
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