ABC 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:

Answer rating: 100% (QA)

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