A. At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

a. increase by $3,400,000
b. decrease by $3,400,000
c. increase by $1,700,000
d. decrease by $1,700,000

B. Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

a. $23,000
b. $95,000
c. $2,300
d. $21,850

C. During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

a. Work in Process     175,000, 

Wages Payable                                   175,000

b. Work in Process     150,000
Wages Payable                                   150,000

c. Wages Payable       175,000
Work in Process                                  175,000

d. Wages Payable       150,000
Work in Process                                  150,000