The Rowe Corporation Uses a Standard Cost System in Which

question 86

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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