Answer:
C. Manufacturing Overhead would be debited for $12,500
Explanation:
Based on the information given to dispose of the balance in the Manufacturing Overhead account the correct entry will be:
Manufacturing Overhead would be debited for $12,500
Calculated as:
First step is to calculate the Predetermined overhead rate
Predetermined overhead rate = $250,000/20,000
Predetermined overhead rate = $12.50
Second step is to calculate the Applied manufacturing overhead
Applied manufacturing overhead =$12.50 *
*19,000
Applied manufacturing overhead= $237,500
Now let calculate Overapplied Manufacturing overhead
Overapplied Manufacturing overhead = $237,500 - $225,000
Overapplied Manufacturing overhead= $12,500 Debited to Manufacturing Overhead
Therefore To dispose of the balance in the Manufacturing Overhead account the correct entry is Manufacturing Overhead would be debited for $12,500