7. During the period, labor costs incurred on account amounted to $225,000, including $190,000 for production orders and $35,000 for general factory use. Factory overhead applied to production was $54,000. The entry to record the actual factory overhead costs for labor incurred is Description Debit Credit a. Accounts Payable 35,000 Factory Overhead 35,000 b. Factory Overhead 54,000 Accounts Payable 54,000 C. Work in Process 35,000 Wages Payable 35,000 d. Factory Overhead 35,000 Wages Payable 35,000 8. A manufacturing company applies factory overhead based on direct labor hours. At the beginnirlg of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a. $6,000 overapplied b. $6,000 underapplied C. $54,800 overapplied d. $54,800 underapplied