Nitrol Corporation Manufactures Brass Vases Using a Standard Cost System

question 40

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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Definitions:

HNO3

Nitric acid, a highly corrosive and toxic strong acid used in the manufacture of fertilizers and explosives.

D-Tagatose

A ketohexose sugar related to fructose that has potential health benefits and is used as a low-calorie sweetener.

Keto-Enol Tautomerization

A chemical equilibrium between a ketone and its corresponding enol (a compound with a double bond and a hydroxyl group connected to the same carbon), highlighting the mobility of hydrogen and electrons.

D-Glucose

A naturally occurring form of glucose, a simple sugar, that is widely found in nature and is a primary energy source for living organisms.