A camera company applies FOH based on machine hours (MH). At thr beginninv of the year estimated FOH was 200,000 and the estimated MH were 5,000. At then end of the year. Actual FOH was $240,000 and actual MH were 5,000. at the end of the year FOH is

a. underapplied

b. overapplied

by

a. $500

b. $20,000

c. $40,000

d.some amount other than those shown

And the journal entey necessary to resolve the issue at year end will include

a. debit to CGS

b.credit to CGS

c. none of rhe choices are correct

d. credit to WIP Inventory

e. debit to factory overhead