Answer the Following Questions Using the Information Below:
Sunny Company

question 300

Multiple Choice

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-_________________is a derived amount of output.

• A)Proration
• B)Equivalent units
• C)Under-allocation
• D)Over-allocation

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Definitions:

Persecution Delusions

False beliefs where an individual thinks they are being plotted against, spied on, or harassed by others without evidence.

Control

The power to influence or direct people's behavior or the course of events, often involving a degree of regulation or command.

Disorganized Behavior

Acting in strange or unusual ways, including strange movement of limbs and inappropriate self-care, such as failing to dress properly or bathe.

Schizophrenia

A mental disorder characterized by delusions, hallucinations, disorganized speech and behavior, and impaired cognitive ability.