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Cyclone Company Had the Following Information The Journal Entry to Apply Overhead to a Job Incurring

Question 111

Multiple Choice

Cyclone Company had the following information:  Budgeted factory overhead $85,000 Actual factory overhead $105,000 Budgeted: Direct- labor costs $100,000 Actual: Direct- labor costs $105,000\begin{array} { l l } \text { Budgeted factory overhead } & \$ 85,000 \\\text { Actual factory overhead } & \$ 105,000 \\\text { Budgeted: Direct- labor costs } & \$ 100,000 \\\text { Actual: Direct- labor costs } & \$ 105,000\end{array} The journal entry to apply overhead to a job incurring $15,000 of direct- labor cost includes a:


A) credit to factory Overhead Control for $15,000
B) debit to Factory Overhead Control for $12,750
C) credit to WIP Inventory for $15,000
D) debit to WIP Inventory for $12,750

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