Valor Company Is Planning to Implement an Activity-Based Costing (ABC)system

Multiple Choice

Valor company is planning to implement an activity-based costing (ABC) system to apply overhead costs to products.Three activities were identified and rates were calculated for each activity.

Assume 600 purchase requisitions were processed,1,200 production setups were performed,and 300 products were inspected for the year.Which of the following journal entries would be made by Valor to record the application of overhead?

A) Work in Process Inventory 36,000
Manufacturing Overhead 36,000
B) Manufacturing Overhead 36,000
Work in Process Inventory 36,000
C) Manufacturing Overhead 36,000
Finished Goods Inventory 36,000
D) Finished Goods Inventory 36,000
Work in Process Inventory 36,000
E) None of the answer choices is correct.