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Tenaris Saudi Steel Pipes Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of SAR 12 per direct labor-hour. The
Tenaris Saudi Steel Pipes Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of SAR 12 per direct labor-hour. The following data are obtained from the accounting records for June 2020: Direct materials SAR 400,000 Direct labor (16,000 hours @ SAR 11/hour) SAR 176,000 Indirect labor SAR 25,000 Plant facility rent SAR 100,000 Depreciation on plant machinery and equipment SAR 42,000 Sales commissions SAR 30,000 Administrative expenses SAR 40,000 Required: (2.5 MARKS) a. What actual amount of manufacturing overhead costs was incurred during June 2020? (0.75 PTS) b. What amount of manufacturing overhead was allocated to all jobs during June 2020? (0.75 PTS) c. For June 2020, was manufacturing overhead under allocated or over allocated? Explain. (1 PTS)
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