Loraine Company Applies Manufacturing Overhead to Jobs Using a Predetermined

Multiple Choice

Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct Labour cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:
-The entry to dispose of the under- or overapplied overhead cost for the month would include:

A) a credit of £100 to Cost of Goods Sold.
B) a credit of £6,000 to Manufacturing Overhead.
C) a debit of £6,000 to Cost of Goods Sold.
D) A credit of £100 to the Manufacturing Overhead Account.