If direct labor for the month is $40,000 overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?

a. Debit Work-in-Process Inventory $40,000; credit Payroll $40,000

b. Debit Overhead-Applied $40,000; credit Work in Process $40,000

c. Debit Work-in-Process Inventory $24,000; credit Overhead-Applied $24,000

d. Debit Work-in-Process Inventory $66,000; credit Overhead-Applied $66,000