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Myrna's Manufacturing Calculated Its Predetermined Overhead Rate to Be 200

Question 52

Multiple Choice

Myrna's Manufacturing calculated its predetermined overhead rate to be 200% of direct materials costs.For the month of July, the company incurred $120,000 of raw material costs, of which $90,000 were direct materials, and $30,000 were indirect materials.Actual overhead incurred was $175,000.What would be the debit entry to the Work in Process Inventory account for July with respect to manufacturing overhead?


A) $175,000
B) $180,000
C) $240,000
D) $zero, the account should be credited

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