Nelson Company had the following costs during the month of October 2020: indirect labor $2,500; factory rent, $15,000; sales commissions, $1,500; factory utilities, $11,000; office copy machine lease, $500, and Indirect materials, $6,800. Overhead was applied at $0.75 per direct labor dollar. Direct labor dollars were $40,000. Which of the following would be included in the journal entry to close out the Manufacturing Overhead account at the end of October 2020?

a.Credit to Manufacturing Overhead, $7,300.

b.Credit to Manufacturing Overhead, $5,300.

c.Debit to Cost of Goods Sold, $7,300

d.Debit to Manufacturing Overhead, $5,300.