Reference no: EM132686061

Problem 1: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $336,000 and direct labor hours would be 42,600. Actual manufacturing overhead costs incurred were $308,100, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a

a. credit to Factory Overhead for $413,436
b. credit to Factory Overhead for $336,000
c. debit to Factory Overhead for $413,436
d. debit to Factory Overhead for $308,100