Martinez Manufacturing Applies Overhead Based on Direct Labor Hours

question 49

Multiple Choice

Martinez Manufacturing applies overhead based on direct labor hours.The company estimates that their overhead for the year will be $180,000,and that they will use 72,000 direct labor hours.Martinez Manufacturing actually used 75,000 direct labor hours.The journal entry to record manufacturing overhead would include a:

• A) Debit to Work in Process Inventory for $187,500.
• B) Credit to Manufacturing Overhead Applied for $180,000.
• C) Debit to Work in Process Inventory for $180,000.
• D) Debit to Manufacturing Overhead Applied for $187,500.

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Definitions:

Stab Wounds

Injuries resulting from a pointed object penetrating the skin and underlying tissues.

Sprains

Injuries involving the stretching or tearing of ligaments, which connect two bones together in your joints.

Broken Bones

The condition in which there is a fracture in one or more of the bones in the body.

Physicians

Medical professionals who are licensed to diagnose and treat illness, injury, and other physical and mental impairments in humans.