If Direct Labor for the Month Is $30,000,overhead Is Applied

question 63

Multiple Choice

If direct labor for the month is $30,000,overhead is applied based on direct labor,annual overhead is estimated to be $500,000,and annual direct labor is estimated to be $800,000,what is the entry to apply overhead to production?

• A)Debit Work-in-Process Inventory $18,750; credit Payroll $18,750
• B)Debit Overhead-Applied $18,750; credit Work-in-Process Inventory $18,750
• C)Debit Work-in-Process Inventory $18,750; credit Overhead-Applied $18,750
• D)Debit Work-in-Process Inventory $30,000; credit Overhead-Applied $30,000

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Definitions:

Agricultural Societies

Communities or societies that rely on agriculture as their primary means of subsistence, focusing on the cultivation of crops and raising of livestock.

Food Production

The processes involved in creating food products from raw materials through agriculture, husbandry, or aquaculture, meeting the dietary needs of populations.

Earth's Environment

Comprises all the external factors influencing the life and ecosystems on the planet, including climate, land, water, and living organisms.