Answer:
Option C is correct
debit to Factory Overhead for $309,700
Explanation:
<em>Overheads are charged to cost units using a pre-determined overhead absorption rate. Absorbed overhead is determined by multiplying the overheard absorption rate by the actual activity level.</em>
If the absorbed overhead exceeds the actual overhead cost, the difference is over absorbed overhead , and it is under-absorbed overhead if reverse is the case.
In any way, only the actual overhead incurred would be charged as production cost.
In the question, the actual overhead cost is $309,700, hence it will be debited to the Factory overhead account representing an increase in production cost
The right accounting entry is
debit to Factory Overhead for $309,700