The Ammon Company Uses a Standard Cost System in Which

The Ammon Company uses a standard cost system in which manufacturing overhead is applied to units on the basis of 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 follow cost and activity were recorded during July $\begin{array}{ll}\text { Total actual manufacturing ov erhead cost incurred } & £ 325,000 \\\text { Units of product completed } & 4,500 \\\text { Actual machine-hours worked } & 23,000\end{array}$
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.

Correct Answer:

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