The Ammon Company Uses a Standard Cost System in Which

question 63

Multiple Choice

The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of machine-hours. During July, the company budgeted £350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours. At standard, each unit of finished product requires 5 machine-hours. The follow cost and activity were recorded during July $\begin{array}{ll}\text { Total actual manufacturing ov erhead cost incurred } & £ 325,000 \\\text { Units of product completed } & 4,500 \\\text { Actual machine-hours worked } & 23,000\end{array}$
The amount of overhead cost that the company applied to work in process for July was

• A)£292,500.
• B)£315,000.
• C)£322,000.
• D)£325,000.

Understand and compute probabilities associated with normal distributions.

Calculate probabilities related to the means of sample distributions, considering both central tendency and variability.

Understand the concept of standard error and its calculation in different contexts, including with and without the finite population correction factor.

Apply the Central Limit Theorem in different scenarios to evaluate probabilities.

---

Definitions:

Department Supervisor

A managerial position responsible for overseeing the day-to-day operations and performance of a specific department within an organization.

Line Manager

A manager who directly oversees the work of employees and is responsible for ensuring that their team meets its goals and objectives.

Department Store

A large retail store offering a wide variety of goods organized into departments.

Practical Implications

Real-world consequences or applications of theories, actions, or decisions in a specific field or situation.