Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost...
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Accounting
Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014:
Direct materials
$140,000
Direct labor (4,000 hours @ $10/hour)
40,000
Indirect labor
13,000
Plant facility rent
30,000
Depreciation on plant machinery and equipment
22,500
Sales commissions
24,000
Administrative expenses
28,000
For June 2014, manufacturing overhead is _____?
Underallocated by $6,500
Underallocated by $21,500
Overallocated by $21,500
Overallocated by $6,500
None of the above
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