XYZ company noted the following in his books:

Items in Process 80,000

Indirect Assigned Costs 80,000

The correct explanation of this entry in a company that uses Job Order Cost System will be:

a. The company incurred actual indirect costs of $ 80,000.

b. The company paid actual indirect costs of $ 80,000.

c. The company estimated (budgeted) indirect costs of $ 80,000.

d. The company paid estimated (budgeted) indirect costs of $ 80,000.