The Ammon Company Uses a Standard Cost System in Which

Multiple Choice

The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of standard machine-hours.During July,the company budgeted $350,000 in manufacturing overhead cost at a denominator activity of 25,000 machine-hours.At standard,each unit of finished product requires 5 machine-hours.The following cost and activity were recorded during July: The amount of overhead cost that the company applied to work in process for July was:

A) $292,500
B) $315,000
C) $322,000
D) $325,000