Answer the Following Questions Using the Information Below:
Sunny Company

question 176

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-Explain under-allocated and over-allocated indirect costs.
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Definitions:

Self-Efficacy

The belief in one's ability to succeed in specific situations or accomplish a task.

Negative Outlook

A pessimistic attitude or perspective towards events or situations, expecting the worst outcome.

Motivation

The psychological drive or energy that initiates, guides, and maintains goal-oriented behaviors.

Social Alternatives

Other forms of engaging with community or activities that do not involve the initial behavior being modified or avoided.