A company incurred actual overhad costs of $10,000 during the month. The company's predetermined
overhead rate is $50 per direct labor hours, and the company actually used 190 hours during the period.
Which journal entry correctly records the underapplied or overapplied overhad, assuming it is insignificant?
Debit manufacturing overhead; Credit work-in-process
Debit manufacturing overhead; credit cost of goods sold
Debit cost of goods sold; credit finished goods
Debit cost of goods sold; credit manufacturing overhead