Atlace Manufacturers uses standard costing system. Standards for manufacturing overhead are as follows:
Variable overhead: $30 per direct labor hour
Fixed overhead: $10 per direct labor hour
Actual overhead incurred (variable and fixed): $45,600
Standards for direct labor are as follows:
Hours per unit 0.5, Direct labor cost per hour $18.00
Actual direct labor for the month: 1,200 hours for a total cost of $24,000
Actual and planned production for the month: 3,000 units
The journal entry to allocate overhead cost (both variable and fixed)to production would be:

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The Answer of Atlace Manufacturers uses standard costing system. Standards for manufacturing overhead are as follows:
Variable overhead: $30 per direct labor hour
Fixed overhead: $10 per direct labor hour
Actual overhead incurred (variable and fixed): $45,600
Standards for direct labor are as follows:
Hours per unit 0.5, Direct labor cost per hour $18.00
Actual direct labor for the month: 1,200 hours for a total cost of $24,000
Actual and planned production for the month: 3,000 units
The journal entry to allocate overhead cost (both variable and fixed)to production would be:

Atlace Manufacturers Uses Standard Costing System