Wilson Enterprises Applies Overhead Based on Direct Labor Cost

question 35

Multiple Choice

Wilson Enterprises applies overhead based on direct labor cost.The company estimates that their overhead for the year will be $240,000,and direct labor cost to be $300,000.Actual direct labor cost for Martinez Manufacturing was $280,000.The journal entry to record manufacturing overhead would include a:

• A) Debit to Work in Process Inventory for $240,000.
• B) Credit to Manufacturing Overhead Applied for $350,000.
• C) Credit to Work in Process Inventory for $224,000.
• D) Credit to Manufacturing Overhead Applied for $224,000.

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