If the predetermined overhead allocation rate is 245% of direct labor cost,and the Baking Department's direct labor cost for the reporting period is $10,000,the following entry would be made to record the allocation of overhead to the products processed in this department:

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Hannah Bustos · Accepted Answer

Final Answer : True, Explanation :  To record the allocation of overhead to the products processed in the Baking Department, we would need to multiply the direct labor cost by the predetermined overhead allocation rate of 245%.Overhead allocated = Direct labor cost x Predetermined overhead allocation rateOverhead allocated = $10,000 x 245%Overhead allocated = $24,500Therefore, the entry to record the allocation of overhead to the products processed in the Baking Department would be:Overhead allocated     $24,500Manufacturing Overhead  $24,500

If the predetermined overhead allocation rate is 245% of direct labor cost,and the Baking Department's direct labor cost for the reporting period is $10,000,the following entry would be made to record the allocation of overhead to the products processed in this department:

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