The Rowe Company Uses a Standard Cost System in Which

The Rowe Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of machine-hours. During January, the company budgeted to incur £225,000 in manufacturing overhead cost and to operate at a denominator activity level of 25,000 machine-hours. At standard, each unit of finished product requires 3 machine-hours. The following cost and activity were recorded during January. $\begin{array}{ll}\text { Total actual manufacturing ov erhead cost incurred } & £ 217,750 \\\text { Units of product completed } & 8,000 \\\text { Actual machine-hours worked } & 23,000\end{array}$ The amount of overhead cost that the company applied to Work in Process for January was

A) £217,750.
B) £225,000.
C) £221,600.
D) £216,000.

Correct Answer:

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