Answer the Following Questions Using the Information Below:
Sunny Company

question 284

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-For June 2018,manufacturing overhead was:

• A)overallocated.
• B)underallocated.
• C)neither overallocated nor underallocated.
• D)indeterminable.

---

Definitions:

Rational Beings

Entities capable of reasoning and logical thought, often used to distinguish humans in philosophical contexts.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively, and generally prefers critical thinking and evidence over acceptance of dogma or superstition.

Psychology

The scientific study of the mind and behavior, examining how humans and animals interact with their environment and each other.

Optimistic View

A perspective geared towards expecting positive outcomes and focusing on the hopeful aspects of situations.