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Horngren'S Financial And Managerial Accounting
Found in: Page 940

Short Answer

Rosco Company estimates the company will incur $80,750 in overhead costs and 4,750 direct labor hours during the year. Actual direct labor hours were 4,600. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base, and prepare the journal entry for the allocation of overhead.

The predetermined overhead allocation rate is $17 per hour.



Debit ($)

Credit ($)

Work in process labor


Manufacturing overhead


See the step by step solution

Step by Step Solution

Predetermined overhead allocation rate

Allocation during the year

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