Answer the following question(s)using the information below.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:

-The amount of manufacturing overhead allocated to all jobs during June totals

Question

Answer the following question(s)using the information below.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:
 
-The amount of manufacturing overhead allocated to all jobs during June totals

Quizplus · Accepted Answer

The manufacturing overhead allocated to all jobs during June can be calculated as follows:
Direct labour hours = 16,000 + 13,000 + 11,000 = 40,000
Manufacturing overhead allocated = $15 per direct labour hour x 40,000 direct labour hours = $600,000
Therefore, the correct choice is B) $105,000, as this is the amount of manufacturing overhead allocated to production during June based on the budgeted indirect cost allocation rate of $15 per direct labour hour.

Answer the Following Question(s)using the Information Below