Answer the Following Questions Using the Information Below:
Sunny Company

question 131

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-Underallocated indirect costs occur when the allocated amount of indirect costs is greater than the amount incurred for that period.

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Definitions:

Test Driver

A piece of code used primarily to verify the correctness of another piece of code, often used in the development process to perform unit testing.

Rectangle Class

A class in programming that is used to create objects representing rectangular shapes, often providing attributes such as length and width.

Instance Variables

Variables that, when declared within a class, ensure that every object instantiated from that class maintains its own distinct copy of these variables.

Member Method

A function defined within a class in object-oriented programming that can manipulate or access the object's data members.