The Adlake Corporation Makes and Sells a Single Product and Uses

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