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Pebacle Company, which uses a job order cost system, applies overhead using a predetermined rate based on direct labour-hours. For 2012, the company estimated it would spend $400,000 on total manufacturing overhead and that it would use 250,000 direct labour-hours. At the end of the year, the company had used 220,000 direct labour-hours and incurred $390,000 of actual overhead. What is the entry to cost of goods sold to close out the under- or over-applied overhead, assuming that the entire amount of over- or under-applied overhead is fully charged to cost of goods sold? a) Debit $10,000 b) Debit $48,000 c) Debit $38,000 d) Credit $38,000 e) Credit $48,000