Answer the Following Questions Using the Information Below:
Sunny Company

question 234

True/False

Answer the following questions using the information below:
Sunny Company makes gas pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labour-hour.The following data are obtained from the accounting records for June 2018:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-When actual indirect costs exceed allocated indirect costs,indirect costs have been overapplied.

---

Definitions:

Area

Refers to the extent of a surface or space measured in square units.

Sample Sizes

The number of observations or individuals in a subset of data taken from a larger population for the purposes of statistical analysis.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive".

F-test Statistic

A ratio of two variances that follows an F-distribution, used to compare statistical models or test hypotheses about the equality of variances.