Answer the Following Questions Using the Information Below:
Sunny Company

question 256

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 280000 \\\text { Direct labour (7000 hours @ } \$ 11 / \text { hour) } & \$ 77000 \\\text { Ind irect labour } & \$ 20000 \\\text { Plant facility rent } & \$ 60000 \\\text { Deprecia tion on plant machinery and equipment } & \$ 30000 \\\text { Sales commissions } & \$ 40000 \\\text { Administrative expenses } & \$ 50000\end{array}$$
-The following information was gathered for Rogers Company for the year ended 31 December 2018.
$$\begin{array} { l c c } & \text { Budgeted } & \text { Actual } \\\text { Direct labour-hours } & 60000 \mathrm { dlh } & 67500 \mathrm { dlh } \\\text { Factory overhead } & \$ 420000 & \$ 458000\end{array}$$
Assume that direct labour-hours are the cost-allocation base.
Required
a.Compute the budgeted factory overhead rate.
b.Compute the factory overhead applied.
c.Compute the amount of over/underapplied overhead.
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Definitions:

Myofibril

A long, slender contractile structure within muscle cells, composed of repeating units called sarcomeres, which are responsible for muscle contraction.

Actin

A protein that forms (together with myosin) the contractile filaments of muscle cells and is also involved in motion in other types of cells.

Myosin

A type of motor protein found in muscle cells, involved in muscle contraction through its interaction with actin.

Rigidity

The lack of flexibility or adaptability in processes, systems, or organizations that can hinder responsiveness and innovation.