Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $476,000, and direct labor costs to be $2,380,000. Actual overhead costs for the year totaled $437,000, and actual direct labor costs totaled $1,990,000. At year-end, the balance in the Factory Overhead account is a:

Multiple Choice

• $437,000 Debit balance.

• $398,000 Debit balance.

• $39,000 Debit balance.

• $476,000 Credit balance.

• $39,000 Credit balance.