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Cloudy Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted overhead rate of $21 per direct labour hour. The following

  


Cloudy Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted overhead rate of $21 per direct labour hour. The following data are obtained from the accounting records for June in the current year: Direct materials $320,000 Direct labour (8,000 hours @ $14/hour) $112,000 Indirect labour $32,000 Plant facility rent $55,000 Depreciation on plant machinery and equipment $20,000 Sales commissions $28,000 Administrative expenses $40,000 REQUIRED: For June, determine the amount that manufacturing overhead was over/under allocated.

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