The Chase Company Uses a Standard Cost System in Which

question 62

Multiple Choice

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours.
-The total amount of overhead cost applied to Work in Process during November was:

• A)$47,520
• B)$66,528
• C)$106,528
• D)$114,048

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Definitions:

Organisations

Groups or entities (such as corporations, nonprofits, institutions) structured to achieve specific goals through collective effort.

Accommodative Strategy

Accepts social responsibility and tries to satisfy prevailing economic, legal and ethical performance criteria.

Discretionary Responsibilities

Obligations that an individual or organization chooses to undertake out of ethical or moral principles rather than because of legal requirements.

Economic Responsibility

The obligation of an organization or individual to act in ways that benefit the economic well-being of society.