53. A firm's total overhead incurred for the year was $40 000, and at year-end the overhead component of WIP, FG and COGS were as follows:

WIP FG COGS

Overhead $ 9 000 $ 1 200 $ 26 000

If underapplied or overapplied overhead is to be prorated, what is the amount (to the nearest dollar) that will be transferred to WIP because of the proration?

A. Credit WIP with $945

B. Debit WIP with $945

C. Credit WIP with $974

D. Debit WIP with $974

Why the answer is B?