Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System

question 18

Multiple Choice

Nitrol Corporation manufactures brass vases using a standard cost system with standard machine-hours as the activity base for overhead.The following information relates to vase production at Nitrol for last year: The standard machine-hours per vase is 1.25.Last year Nitrol produced 84,000 vases. What was Nitrol's total underapplied or overapplied overhead cost for last year?

• A)$1,060 overapplied
• B)$1,060 underapplied
• C)$7,940 overapplied
• D)$13,940 overapplied

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