Overhead based on machine hours


Price Manufacturing assigns overhead based on machine hours. Department A logs 1,200 machine hours and Department B shows 2,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a

a) debit to Manufacturing Overhead for $16,000.

b) credit to Work in Process?Department B for $10,000.

c) debit to Work in Process for $10,000.

d) credit to Manufacturing Overhead for $16,000.

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Accounting Basics: Overhead based on machine hours
Reference No:- TGS080593

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