Reference no: EM132195263
Question - Franklin Inc. 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 2018:
Direct Materials $170,000
Direct labor (4,600 hours @ $10/hour) 46,000
Indirect Labor 17,000
Plant facility rent 34,000
Depreciation on plant machinery and equipment 24,500
Sales commissions 33,000
Administrative expenses 28,000
For June 2018, the manufacturing overhead is?
A. overapplied by $20,700
B. underapplied by $7,300
C. underapplied by $20,700
D. overapplied by $7,300
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