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.

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Definitions:

Net Income

The amount of money that remains after all operating expenses, taxes, and dividends have been paid, representing the company's profit.

Cost Method

An accounting method used to value inventory or assets, based on the price paid to acquire them.

Stock Investments

Financial assets representing shares of ownership in a corporation, which may provide dividends and capital gains to the investor.

Dividend Revenue

Income earned by shareholders when a company distributes a part of its earnings to its stockholders.