Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000. The journal entry to record manufacturing overhead would include a:

Debit to Work in Process Inventory for $240,000.

Credit to Manufacturing Overhead Applied for $350,000.

Credit to Work in Process Inventory for $224,000.

Credit to Manufacturing Overhead Applied for $224,000.