The Adlake Corporation Makes and Sells a Single Product and Uses

question 23

Multiple Choice

The Adlake Corporation 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: The amount of overhead cost that the company applied to work in process for October was:

• A)$279,300
• B)$291,330
• C)$294,000
• D)$285,000

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Definitions:

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