The entry to allocate manufacturing overhead costs to production involves which of the following?
A)Debit to work in process inventory for the actual cost of overhead
B)Credit to work in process inventory for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output
C)Credit to work in process inventory for the actual cost of overhead
D)Debit to work in process inventory for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output

Question

Quizplus · Accepted Answer

The entry to allocate manufacturing overhead costs to production involves debiting the work in process inventory account for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output. This method ensures that overhead costs are allocated evenly across all products produced, and that each product is charged a fair share of manufacturing overhead based on the resources it consumed during production. Therefore, option D is the best choice.

The Entry to Allocate Manufacturing Overhead Costs to Production Involves