Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pumpkin Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data

Pumpkin Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

Direct materials $300,000

Direct labor (16,000 hours @ $11/hour) $ 44,000

Indirect labor $ 20,000

Plant facility rent $ 100,000

Depreciation on plant machinery and equipment $ 40,000

Sales commissions $ 30,000

Administrative expenses $ 40,000

Required:

a. What actual amount of manufacturing overhead costs was incurred during June 2014?

b. What amount of manufacturing overhead was allocated to all jobs during June 2014?

c. For June 2014, was manufacturing overhead underallocated or overallocated?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linguistic Auditing

Authors: Nigel Reeves, Colin Wright

1st Edition

1853593281, 978-1853593284

More Books

Students also viewed these Accounting questions

Question

Define language, and recognize its properties.

Answered: 1 week ago

Question

1. Are my sources credible?

Answered: 1 week ago

Question

3. Are my sources accurate?

Answered: 1 week ago

Question

1. Is it a topic you are interested in and know something about?

Answered: 1 week ago