Journal entry to apply the overhead:
It is given that the direct labor for the month is $80,000 and overhead is applied based on 75% of direct labor dollars. It means the Applied Overhead shall be 80,000*75% = $60,000
The Journal entry to apply the overhead shall be as follows:
Work in Process Inventory Debit $60,000
Manufacturing Overhead Credit $60,000
(Being overhead applied to the production)
