Yamada Company applies factory overhead to its production departments on the basis

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Yamada Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Yamada had $125,000 of direct labor cost, and in the Finishing Department, Yamada had $35,000 of direct labor cost. The entry to apply overhead to these production departments is:
A.Debit Factory OverheadAssembly $112,500; debit Factory OverheadFinishing $31,500; credit Work in Process Inventory $144,000.
B.Debit Factory Overhead $144,000; credit Work in Process InventoryAssembly $112,500; credit Work in ProcessFinishing $31,500.
C.Debit Factory Overhead $144,000; credit Factory Payroll $144,000.
D.Debit Work in Process InventoryAssembly $112,500; debit Work in Process InventoryFinishing $31,500; credit Factory Overhead $144,000.
E.Debit Factory Payroll $144,000; credit Cash $144,000.

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