Answer the Following Question(s)using the Information Below

question 133

Multiple Choice

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 actual amount of manufacturing overhead costs incurred in June totals

• A)$557,000.
• B)$200,000.
• C)$110,000.
• D)$80,000.
• E)$105,000.

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Definitions:

Pre-tax Income

The income earned by a business before taxes are deducted.

Split-off Point

The stage in a production process where multiple products emerge from a single input, each taking a separate path in the production process thereafter.

Joint Products

Products that are produced simultaneously during the same manufacturing process and from the same raw materials, often with varying values.

Manufacturing Capacity

The maximum amount of products a manufacturing entity can produce over a certain period of time.