SHOW YOUR WORK AND INCLUDE FORMULAS USED

Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour. The following data are obtained from the accounting records for June in the current year:

Direct materials	$280,000
Direct labour (7,000 hours @ $11/hour)	$77,000
Indirect labour	$20,000
Plant facility rent	$60,000
Depreciation on plant machinery and equipment	$30,000
Sales commissions	$40,000
Administrative expenses	$50,000

The actual amount of manufacturing overhead costs incurred in June totals

a.	$110,000.
b.	$105,000.
c.	$557,000.
d.	$200,000.
e.	$80,000.