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.

---

Definitions:

Ambiguous Situations

Circumstances in which information is unclear or lacking, leading to uncertainty and difficulty in decision-making.

Leaner Media

Communication channels that convey messages with minimal use of cues, such as facial expressions or voice variation, often resulting in more straightforward, less rich information exchange.

Media Richness

The ability of a communication medium to effectively convey complex information and promote understanding, often involving feedback, cues, and personal focus.

Sincerity

The quality of being free from pretense, deceit, or hypocrisy.