Mendes Company uses a job order cost system and applies overhead based on estimated rates for work in their factory. The overhead application rate is based on total estimated overhead costs of $400,000 and direct labor hours of 50,000. For job 836, direct labor hours were 700 for the month of December. What is the appropriate journal entry for job 836 for the month of December?

Question 26 options:

Factory Overhead should be debited for $4,200.

Factory Overhead should be credited for $4,600.

Work in Process should be credited for $3,200.

Finished Goods Inventory should be debited for $5,600.