Answer the Following Question(s)using the Information Below

question 85

Multiple Choice

Answer the following question(s) using the information below.Cloudy Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $21 per direct labour hour.The following data are obtained from the accounting records for June in the current year:

-For June, manufacturing overhead was

• A)overallocated by $5,000.
• B)underallocated by $32,000.
• C)neither underallocated or overallocated.
• D)underallocated by $30,000.
• E)overallocated by $61,000.

---

Definitions:

Probiotics

Live microorganisms intended to provide health benefits when consumed, by improving or restoring the gut flora.

Inflammatory Bowel Disease

A term for two conditions, Crohn's disease and ulcerative colitis, characterized by chronic inflammation of the gastrointestinal tract.

St. John's Wort

A plant used in herbal medicine believed to have antidepressant properties and is used for the treatment of mild to moderate depression.

Paroxetine

An antidepressant medication belonging to the selective serotonin reuptake inhibitor (SSRI) class, used to treat depression, anxiety disorders, and PTSD.