The Adlake Company Makes and Sells a Single Product and Uses

question 7

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 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: $\begin{array}{l}\begin{array}{lll}\text { Total Actual Manufacturing Overhead Cost Incurred}\\\text { Units of Product Completed}\\\text { Actual Machine Hours Worked}\\\end{array}\begin{array}{lll}\$ 294,000 \\3,800 \\19,422\end{array}\end{array}$ What was the amount of overhead cost that the company applied to work in process for October?

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

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins into carbon dioxide and chemical energy.

Glucose Molecule

A simple sugar and important energy source in living organisms, serving as a primary substrate for cellular respiration and a basic building block for carbohydrates.

Cellular Respiration

A metabolic process that occurs in cells where oxygen is used to break down glucose, producing ATP as energy for the cell.

NADH

Nicotinamide adenine dinucleotide (NAD) in its reduced form, a key coenzyme in the electron transport chain that generates ATP in cellular respiration.