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:

-For June, manufacturing overhead was

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:
 
-For June, manufacturing overhead was

Quizplus · Accepted Answer

The correct answer is that manufacturing overhead was underallocated by $5,000, indicating that the actual overhead costs were higher than the allocated overhead costs by this amount.

Answer the Following Question(s)using the Information Below