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Question 3 (10 points) AI, CI, DI Hassan company uses the proration approach to accounting for the overhead cost. At the end of 2019, the
Question 3 (10 points) AI, CI, DI Hassan company uses the proration approach to accounting for the overhead cost. At the end of 2019, the company records showed the following ending balances: COGS: $70,000; Finished goods: $20,000; Work in process: $10,000. The actual manufacturing overhead cost for the year was $200,000 and the allocated one was $150,000 Instruction: 1. What is the difference between normal approach and actual approach for calculating the direct and indirect costs? (5 Points) 2.Calculate the over/under allocated balance and prepare the adjusted entry. (5 Points)
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