Midtown, Inc uses a predetermined overhead allocation rate of $67 per direct labor hour

In January, the company completed Job A23 which utilized 18 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?
A) debit Finished Goods Inventory $1,206 and credit Manufacturing Overhead $1,206
B) debit Manufacturing Overhead $67 and credit Work-in-Process Inventory $67
C) debit Work-in-Process Inventory $1,206 and credit Manufacturing Overhead $1,206
D) debit Cost of Goods Sold $67 and credit Finished Goods Inventory $67

C .C) Allocated manufacturing overhead cost = Predetermined overhead allocation rate x Actual quantity of the allocation base used by each job

Allocated manufacturing overhead cost = $67 per DLHr x 18 hours = $1,206