During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Work in Process 23,000

Factory Overhead 23,000

Explanation:

Factory overhead is defined as the cost that is incurred in the process of production that is not directly used as input in creating the product. It is also called indirect cost.

When factory overhead is incurred, the amount now needs to be allocated to the products. This is applying of overhead.

The overhead that was applied is $23,000 and the entries passed include a debit to Work in process to transfer incurred overhead cost to the product, and the the factory overhead is now credited to nil it off.