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 journal entry to record the factory overhead applied to production is

Factory Overhead

All indirect costs associated with the manufacturing process, including utilities, maintenance, and salaries of support staff.

Labor Costs

Expenses associated with compensating employees for their work, including wages, benefits, and taxes.

Production Orders

Instructions to start production of a specific quantity of a product, detailing materials, timings, and resources required.