If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead

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If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead is $600,000, and annual direct labor is $1,000,000, what is the entry to charge direct labor to production?

A. Debit work-in-process inventory $40000; credit payroll $40000

B. Debit overhead-applied $40000; credit work-in-process inventory $40000

C. Debit work-in-process inventory $24000;credit overhead-applied $24000

D. Debit work-in-process inventory $66000;credit overhead-applied $66000

Related Book For answer-question

Cost Management Accounting and Control

ISBN: 978-0324559675

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

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Posted Date: Sep 14, 2020 04:28 AM

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If direct labor for the month is $40,000, overhead is applied based on direct labor, annual overhead

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Cost Management Accounting and Control

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