The Rowe Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard 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: Total actual manufacturing overhead cost incurred$217,750Units of product completed 8,000Actual machine-hours worked 23,000The amount of overhead cost that the company applied to Work in Process for January was:
A. $217,750
B. $221,600
C. $225,000
D. $216,000
Answer: D
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Indicate whether the statement is true or false
Victor Company purchased a patent for $250,000 at the beginning of 2011, and estimated that its expected useful life was 10 years. The patent has a legal life of 20 years. What amount should be recorded as amortization expense for the patent in 2011?
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