The Rowe Corporation Uses a Standard Cost System in Which

question 11

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

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Definitions:

Interest

A recurring payment at a specified rate for borrowing money or for postponing the payment of an owed amount.

Invested

Money put into something with the expectation of gain, typically through an interest-bearing or equity-based vehicle.

Student Tickets

Discounted tickets offered to individuals enrolled in educational institutions as a benefit or to encourage attendance at events.

Box Office

The place where tickets to events such as movies, plays, and concerts are sold, often used to refer to the commercial success of such events.