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

Multiple Choice

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:

A) A
B) B
C) C
D) D
E) E