Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's total underapplied or overapplied overhead cost for last year?
A)$1,060 overapplied
B)$1,060 underapplied
C)$7,940 overapplied
D)$13,940 overapplied

Question

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year:  The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's total underapplied or overapplied overhead cost for last year?
A)$1,060 overapplied 
B)$1,060 underapplied 
C)$7,940 overapplied 
D)$13,940 overapplied

Quizplus · Accepted Answer

The Answer of Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead. The following information relates to vase production at Nitrol for last year:  The standard machine-hours per vase is 1.25. Last year Nitrol produced 84,000 vases. What was Nitrol's total underapplied or overapplied overhead cost for last year?
A)$1,060 overapplied 
B)$1,060 underapplied 
C)$7,940 overapplied 
D)$13,940 overapplied

Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System