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A company uses an integrated accounting system and absorbs production overhead using a predetermined rate...

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A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.

Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was $158,000.

The accounting entries for the production overhead under- or over-absorbed for the period would be:

A.

Debit: work in progress control account $5,000

Credit: production overhead control account $5,000

B.

Debit: work in progress control account $5,000

Credit: income statement $5,000

C.

Debit: income statement $5,000

Credit: production overhead control account $5,000

D.

Debit: production overhead control account $5,000

Credit: income statement $5,000

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