Use the Budget Data Shown Below for Sharp Company to Answer

Multiple Choice

Use the budget data shown below for Sharp Company to answer the questions that follow:
$$\begin{array} { l r } \text { Estimated direct labor hours } & 12,000 \\\text { Estimated direct labor dollars } & \$ 90,000 \\\text { Estimated factory overhead costs } & \$ 179,000 \\\text { Actual direct labor hours } & 11,500 \\\text { Actual direct labor dollars } & \$ 92,000 \\\text { Actual factory overhead costs } & \$ 180,000\end{array}$$
-A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The entry to apply the factory overhead costs for the year would include a

A) debit to Factory Overhead for $360,000
B) credit to Factory Overhead for $432,000
C) debit to Factory Overhead for $377,200
D) credit to Factory Overhead for $360,000