The Adlake Company Makes and Sells a Single Product and Uses

question 140

Multiple Choice

The Adlake Company makes and sells a single product and uses a standard cost system.During October,the company budgeted $300,000 in fixed 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 fixed overhead cost that the company applied to work in process for October was:

• A) $279,300.
• B) $285,000.
• C) $291,330.
• D) $294,000.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Passive Behavior

A pattern of avoiding direct communication, conflict, or confrontation, often characterized by compliance, avoidance of responsibility, and failing to express one’s own needs or preferences.

Vroom-Yetton-Jago

A decision-making model that helps leaders determine the appropriate level of employee participation in decision making based on situational variables.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives to achieve a desired outcome.