The Adlake Company Makes and Sells a Single Product and Uses

question 26

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:
$\begin{array}{|l|r|}\hline \text { Total Actual Manufacturing Overhead Cost Incurred } & \$ 294,000 \\\hline \text { Units of Product Completed } & 3,800 \\\hline \text { Actual Machine Hours Worked } & 19,423 \\\hline\end{array}$
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:

Competitive Advantage

A unique attribute or position that allows an organization to outperform its competitors.

Competitors

Entities that offer similar products or services in the same market and compete for the same customer base.

Supply Chain Management

Encompasses the processes and activities involved in producing and delivering a product or service from suppliers to customers, including sourcing, manufacturing, logistics, and customer service.

Strategic Management

Strategic management is the process of formulating and implementing strategies.