The Rowe Corporation Uses a Standard Cost System in Which

question 46

Multiple Choice

The Rowe Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard machine-hours. During January, the company budgeted to incur $225,000 in manufacturing overhead cost and to operate at a denominator activity level of 25,000 machine-hours. At standard, each unit of finished product requires 3 machine-hours. The following cost and activity were recorded during January: The amount of overhead cost that the company applied to Work in Process for January was:

• A) $217,750
• B) $225,000
• C) $221,600
• D) $216,000

---

Definitions:

Acetyl Chloride

An acyl chloride characterized by the acetyl group (CH3CO-) attached to a chlorine atom; it's a reagent used in organic synthesis, especially for acetylation reactions.

PhMgCl

Phenylmagnesium chloride, a Grignard reagent used in organic synthesis to form carbon-carbon bonds.

Mechanism

Describes the step-by-step process by which reactants are converted into products in a chemical reaction.

Grignard Reagent

An organomagnesium compound used in chemistry for creating new carbon-carbon bonds.