Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labor hour. The following data are obtained from the accounting records for August 2014:

Required:
a. What actual amount of manufacturing overhead cost was incurred during August 2014?
b. What amount of manufacturing overhead was allocated to all jobs during August 2014?
c. For August 2014, was manufacturing overhead underallocated or overallocated? Explain.

Question

Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labor hour. The following data are obtained from the accounting records for August 2014:
 
Required:
a. What actual amount of manufacturing overhead cost was incurred during August 2014?
b. What amount of manufacturing overhead was allocated to all jobs during August 2014?
c. For August 2014, was manufacturing overhead underallocated or overallocated? Explain.

Quizplus · Accepted Answer

The Answer of Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labor hour. The following data are obtained from the accounting records for August 2014:
 
Required:
a. What actual amount of manufacturing overhead cost was incurred during August 2014?
b. What amount of manufacturing overhead was allocated to all jobs during August 2014?
c. For August 2014, was manufacturing overhead underallocated or overallocated? Explain.

Modern Electronics Manufactures Surround Sound Systems and Applies Manufacturing Costs