Desmond Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $16 per direct labor-hour. The following data are obtained from the accounting records for June 2020: Direct materials $126,000 Direct labor (4,700 hours @ $13/hour) 61,110 Indirect labor (1,000 hours) 10,000 Plant facility rent 26,000 Depreciation on plant machinery and equipment 25,000 Depreciation on office equipment 11,000 Sales commissions 23,000 Administrative expenses 41,000 For June 2020, manufacturing overhead is (choose a, b, or c) a)Underallocated by $__________________ b)Overallocated by $___________________ c)Properly allocated If needed, create the journal entry to adjust overhead allocation (using the write-off method).

Home TEST 2 cost.docx + Menu v Home Insert Page Layout References Mailings Review View Section Tools Cut Paste- D Copy Format Palatino Linotype 10 AA IS EEE TT BIU, A X X Aab A A E E AaBbCcDd AaBbCcDd AaBbCcDd AaBbCcDd Footer Header Defau... Norma... la New Style Select Find and Replace Settings Desmond Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $16 per direct labor-hour. The following data are obtained from the accounting records for June 2020: $126,000 61,110 Direct materials Direct labor (4,700 hours @ $13/hour) Indirect labor (1,000 hours) Plant facility rent Depreciation on plant machinery and equipment Depreciation on office equipment Sales commissions 10,000 26,000 25,000 11,000 23,000 41,000 Administrative expenses For June 2020, manufacturing overhead is... (choose a, b, or c) a) Underallocated by $ b) Overallocated by $ c) Properly allocated If needed, create the journal entry to adjust overhead allocation (using the write-off method). Page Num: 1 Page: 1/6 Section: 1/1 Row: 10 Column: 28 Words: 951 Spell Check Local backup on = T!!! - + 151 %