Answer the Following Questions Using the Information Below:
Sunny Company

question 256

Essay

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-The following information was gathered for Rogers Company for the year ended 31 December 2018.
$$\begin{array} { l c c } & \text { Budgeted } & \text { Actual } \\\text { Direct labour-hours } & 60000 \mathrm { dlh } & 67500 \mathrm { dlh } \\\text { Factory overhead } & \$ 420000 & \$ 458000\end{array}$$
Assume that direct labour-hours are the cost-allocation base.
Required
a.Compute the budgeted factory overhead rate.
b.Compute the factory overhead applied.
c.Compute the amount of over/underapplied overhead.
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