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Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are
Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014: Direct materials $140,000 Direct labor (4,000 hours @ $10/hour) 40,000 Indirect labor (O.H) 13,000 Plant facility rent(O.H) 30.000 Depreciation on plant machinery and equipment (O.H) 22,500 Sales commissions 24.000 Administrative expenses 28,000 The amount of manufacturing overhead allocated to all jobs during June 2014 totals 2 $65.500 $89.000 $72.000 $93.500 For June 2014, compute Over/Under allocated of the manufacturing overhead costs? O underallocated by $6,500 O underallocated by $21,500 O overallocated by $21,500 0 overallocated by $6.500
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