The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October: The amount of overhead cost that the company applied to work in process for October was:
A)$279,300
B)$291,330
C)$294,000
D)$285,000

Question

The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October:  The amount of overhead cost that the company applied to work in process for October was:
A)$279,300 
B)$291,330 
C)$294,000 
D)$285,000

Quizplus · Accepted Answer

The Answer of The Adlake Corporation makes and sells a single product and uses a standard cost system. During October, the company budgeted $300,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The following cost and activity were recorded during October:  The amount of overhead cost that the company applied to work in process for October was:
A)$279,300 
B)$291,330 
C)$294,000 
D)$285,000

The Adlake Corporation Makes and Sells a Single Product and Uses