Answer the Following Question(s) Using the Information Below

question 10

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 amount of manufacturing overhead allocated to all jobs during June 2012 totals

• A) $77,000.
• B) $105,000.
• C) $110,000.
• D) $200,000.
• E) $557,000.

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Definitions:

Direct Labor

The labor costs associated directly with the production of goods or services, such as wages for assembly line workers.

Master Budget

An integrated set of financial plans that outlines an organization's financial and operational goals for a specific period, combining various individual budgets into one comprehensive budget.

Credit Sales

Sales made by a business where payment is not received at the time of sale but is instead deferred to a later date.

Raw Materials Purchases

The total cost incurred to buy raw materials that are to be used in the production process.