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Woodman Company applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are
Woodman Company applies factory overhead on the basis of direct labor hours. Budget and actual data for direct labor and overhead for the year are as follows:
Budget Actual
Direct labor hours 30,000 32,000
Factory overhead costs $90,000 $88,000
The required journal entry to record actual overhead costs for the year is:
- A.
Debit WIP 96,000
Credit MOH Applied 96,000
- B.
Debit WIP 90,000
Credit MOH Applied 90,000
- C.
Debit WIP 82,500
Credit MOH Applied 82,500
- D.
Debit MOH Control 96,000
Credit MOH Applied 96,000
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