In 2012, the Doric Agricultural Products Company Used a Predetermined

Multiple Choice

In 2012, the Doric Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows:
$$\begin{array} { l r } \text { Actual direct materials cost } & \$ 812,500 \\\text { Actual direct labor cost } & \$ 180,000 \\\text { Actual overhead costs incurred: } & \$ 264,000 \\\text { Total direct labor hours } & 5,520\end{array}$$ What was the preliminary ending balance in the manufacturing overhead account, before the year-end adjustment to clear the balance to zero?

A) Credit of $6,000
B) Debit of $6,000
C) Credit of $5,900
D) Debit of $4,300