Corporation manufactures computers. Assume that Fell:

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	allocates manufacturing overhead based on machine hours
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estimated 9,000

machine hours and $ 90,000

of manufacturing overhead costs

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actually used 13,000

machine hours and incurred the following actual costs:

The company allocated manufacturing overhead of $ 130,000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $ 83,000.What entry would Fell make to adjust the manufacturing overhead account for overallocated or underallocated overhead?

Date

Accounts and Explanation

Debit

Credit

A.

	Cost of Goods Sold	7,000
	Manufacturing Overhead		7,000

B.

	Manufacturing Overhead	47,000
	Cost of Goods Sold		47,000

C.

	Manufacturing Overhead	7,000
	Cost of Goods Sold		7,000

D.

	Cost of Goods Sold	47,000
	Manufacturing Overhead		47,000