11 what is the journal entry used to write off the difference between allocated and 4309537

11) What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach?

A) Manufacturing Overhead Allocated              200,000

    Work-in-Process Control              10,000

    Finished Goods Control              20,000

Manufacturing Overhead Control              230,000

B) Manufacturing Overhead Allocated              225,000

Work-in-Process Control              1,250

Finished Goods Control              2,500

Cost of Goods Sold              21,250

Manufacturing Overhead Control              200,000

C) Manufacturing Overhead Control              225,000

Work-in-Process Control              1,250

Finished Goods Control              2,500

Cost of Goods Sold              21,250

Manufacturing Overhead Allocated              200,000

D) Manufacturing Overhead Allocated              200,000

Work-in-Process Control              1,250

Finished Goods Control              2,500

Cost of Goods Sold              21,250

Manufacturing Overhead Control              225,000

Answer the following questions using the information below:

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:

BudgetActual

Indirect costs              $270,000              $300,000

Annual salary of each attorney              $100,000              $110,000

Annual salary of each paraprofessional              $ 29,000              $ 30,000

Total professional labor-hours              50,000              dlh              60,000dlh

12) When using a normal costing system, year-end accounting records will show that indirect costs are:

A) applied improperly

B) underallocated

C) overbudgeted

D) overallocated

13) Overhead costs allocated each month are expected to equal actual overhead costs incurred each month.

14) When actual indirect costs exceed allocated indirect costs, indirect costs have been underapplied.

15) One reason indirect costs may be underapplied is if actual indirect costs are less than budgeted indirect costs.

16) The proration approach to allocating overapplied or underapplied overhead adjusts individual job-cost records.

17) The overhead accounts are closed or become zero at the end of each year.

18) Overallocated indirect costs occur when the allocated amount of indirect costs is greater than the amount incurred for that period.

19) The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.

20) Proration is the spreading of underallocated or overallocated overhead among ending work in process, finished goods, and costs of goods sold.

21) It is inappropriate for service organizations such as public accounting firms to use job costing.