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Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect - cost rate of $20 per direct labor - hour.
Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect - cost rate of $20 per direct labor - hour. The following data are obtained from the accounting records for June 2020: Direct materials Direct labor (4,200 hours @ $13/hour) Indirect labor Plant facility rent Depreciation on plant machinery and equipment Sales commissions Administrative expenses $180,000 54,600 17,000 30,000 22,000 25,000 31,000 For June 2020, manufacturing overhead is A. overallocated by $15,000 B. overallocated by $16,000 C. underallocated by $16,00 OD. underallocated by $15,000
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