Answer:
Date Account Title Debit Credit
January 31 Work in Process $540
Factory Overhead $540
Step-by-step explanation:
Overhead is applies by linking it to direct labor.
Overhead is $20,000 when Direct labor is $100,000.
= 20,000 / 100,000
= 20%
The overhead for this job must therefore be:
= 20% * 2,700
= $540