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 2012:

-For June 2012, 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 2012:
 
-For June 2012, 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