Assume That the Hood River Juice Company Applies Factory Overhead

Multiple Choice

Assume that the Hood River Juice Company applies factory overhead to its production departments on the basis of 65% of direct labor costs.Direct labor in the Squeezing Department was $80,000 and direct labor in the Filtering Department was $12,000.The entry to apply overhead to these production departments is:

A) $\begin{array}{llr} \text { Factory Overhead - Squeezing} &52,000\\ \text { Factory Overhead - Filtering } &7,800\\ \text { Work in Process} &&59,800\end{array}$

B) $\begin{array}{llr} \text {Factory Overhead } &59,800\\ \text { Work in Process - Squeezing } &&52,000\\ \text { Work in Process - Filtering } &&7,800\end{array}$

C) $\begin{array}{llr} \text { Factory Overhead } &59,800\\ \text { Factory Payroll } &&59,800\\\end{array}$

D) $\begin{array}{l}\text { Work in Process - Squeezing } & 52,000 \\\text { Work in Process - Filtering } & 7,800\\\text { Factory Overhead }&&59,800\end{array}$
E) $\begin{array}{llr} \text { Factory Payroll } &59,800\\ \text {Cash } &&59,800\\\end{array}$