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Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost rate of $18 per direct labor-hour. The following data

Franklin Inc. 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 2018:

Direct Materials$170,000

Direct labor (4,600 hours @ $10/hour)46,000

Indirect Labor17,000

Plant facility rent34,000

Depreciation on plant machinery and equipment24,500

Sales commissions33,000

Administrative expenses28,000

For June 2018, the manufacturing overhead is ______________.

A. overapplied by $20,700

B. underapplied by $7,300

C. underapplied by $20,700

D. overapplied by $7,300

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