Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000).

-Which account is credited to write off the difference between allocated and actual overhead using the proration approach?
A) Work-in Process Control
B) Manufacturing Overhead Allocated
C) Finished Goods Control
D) Manufacturing Overhead Control

Question

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000).
 
-Which account is credited to write off the difference between allocated and actual overhead using the proration approach?
A) Work-in Process Control 
B) Manufacturing Overhead Allocated 
C) Finished Goods Control 
D) Manufacturing Overhead Control

Quizplus · Accepted Answer

The difference between allocated and actual overhead is written off to Manufacturing Overhead Control using the proration approach. This account is credited to reduce its balance and reflect the actual amount incurred for the period.

Filippucci Company Used a Budgeted Indirect-Cost Rate for Its Manufacturing