Answer the Following Question(s) Using the Information Below

question 129

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 2012:

-The actual amount of manufacturing overhead costs incurred in June 2012 totals

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

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Definitions:

Transformation Process

The method by which inputs (such as raw materials, information, or labor) are converted into outputs (products or services) by an organization.

Continuous Manufacturing Organizations

Companies that use continuously running assembly lines, creating products with many similar characteristics.