Martinez Manufacturing applies overhead based on direct labor hours. The company estimates that their overhead for the year will be $180,000, and that they will use 72,000 direct labor hours. Martinez Manufacturing actually used 75,000 direct labor hours. The journal entry to record manufacturing overhead would include a: Debit to Work in Process Inventory for $187,500. Credit to Manufacturing Overhead Applied for $180,000. Debit to Work in Process Inventory for $180,000. Debit to Manufacturing Overhead Applied for $187,500.