Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2018:

For June 2018, manufacturing overhead is ________.

Question

Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2018:

For June 2018, manufacturing overhead is ________.

Quizplus · Accepted Answer

Overallocated by $7,300; Allocated $82,800 (4,600 × $18 per dlh) when actual overhead is $75,500 (17,000 + 34,000 + 24,500).