A Manufacturing Company Applies Factory Overhead Based on Direct Labor

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The journal entry to apply the factory overhead costs for the year would include a

A) debit to Factory Overhead for $360,000
B) credit to Factory Overhead for $432,000
C) debit to Factory Overhead for $377,200
D) credit to Factory Overhead for $360,000