Amount of overhead cost, The amount of overhead cost that

Amount of overhead cost

Reference no: EM13123595

The Adlake Company 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:

Total actual manufacturing overhead cost incurred $294,000

Units of product completed 3,800

Actual machine-hours worked 19,422

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.

Reference no: EM13123595

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