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Hou Company Applies Factory Overhead to Its Production Departments on the Basis

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Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost.The entry to apply overhead to these production departments is: Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost.The entry to apply overhead to these production departments is:

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