The Judd Company Uses a Standard Cost System in Which

question 10

Multiple Choice

The Judd Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of machine-hours. During May, the company budgeted £320,000 in manufacturing overhead cost at a denominator activity of 20,000 machine-hours. At standard, each unit of finished product requires 4 machine-hours. The following cost and activity was recorded during May: $\begin{array}{ll}\text { Total actual manufacturing ov erhead cost incurred } & £ 335,500 \\\text { Units of product completed } & 4,700 \\\text { Actual machine-hours worked } & 21,000\end{array}$
The amount of overhead cost that the company applied to Work in Process for May was

• A)£336,000.
• B)£335,500.
• C)£300,800.
• D)£315,370.

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