Pumpkin plastic products company manufactures pipes and


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?

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Operation Management: Pumpkin plastic products company manufactures pipes and
Reference No:- TGS01708831

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