O MANAGERIAL ACCOUNTING Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is...

Extracted text: O MANAGERIAL ACCOUNTING Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads $359,600 Actual manufacturing overhead costs $340,000 Estimated direct labour cost $449,500 Actual direct labour cost $441,000 Estimated direct labour hours 248,000 Actual direct labour hours 242,000 Using direct labour hours as the cost driver, the journal entry to dispose of the manufacturing overhead variance is: Select one: a. Dr. Manufacturing overhead $10,900 and Cr. COGS $10,900 Ob. Dr. COGS $10,900 and Cr. Manufacturing Overhead $10,900 c. Dr. WIP $10,900 and Cr. Manufacturing Overhead $10,900 d. Dr. Manufacturing Overhead $90,100 and Cr. COGS $90,100