BUS 294 Sunny Company manufactures pipes and applies manufacturing overhead costs to production
January 6th, 2018
Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour. The following data are obtained from the accounting records for June in the current year:Direct materials$280,000Direct labour (7,000 hours @ $11/hour)$77,000Indirect labour$20,000Plant facility rent$60,000Depreciation on plant machinery and equipment$30,000Sales commissions$40,000Administrative expenses$50,000The actual amount of manufacturing overhead costs incurred in June totalsa.$110,000.b.$105,000.c.$557,000.d.$200,000.e.$80,000.