Question

Can someone please explain this to me? I am very confused. "If direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?"

Answer 1

B. Debit Overhead—Applied $60,000; credit Work-in-Process Inventory $60,000
C. Debit Work-in-Process Inventory $60,000; credit Overhead—Applied $60,000
D. Debit Work-in-Process Inventory $80,000; credit Overhead—Applied $80,000

Answer 2

@Abhisar @tkhunny

Answer 3

What is 75% if $80,000?

Answer 4

@tkhunny 60,000