Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labour hour.The following data are obtained from the accounting records for August 20X9:
$\begin{array}{ll}
\text { Direct materials } & \$ 350000 \
\text { Direct labour (7000 hours } @ \$ 15 / \text { hour) } & \$ 105000 \
\text { Ind irect labour } & \$ 15000 \
\text { Plant lease } & \$ 75000 \
\text { Depreciation on plant and equipment } & \$ 40000 \
\text { Marketing expense } & \$ 20000 \
\text { Plant utilities } & \$ 15000
\end{array}$
Required
a.What actual amount of manufacturing overhead cost was incurred during August 20X9?
b.What amount of manufacturing overhead was allocated to all jobs during August 20X9?
c.For August 20X9,was manufacturing overhead underallocated or overallocated? Explain.
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Question

Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labour hour.The following data are obtained from the accounting records for August 20X9:
 $\begin{array}{ll}
\text { Direct materials } & \$ 350000 \
\text { Direct labour (7000 hours } @ \$ 15 / \text { hour) } & \$ 105000 \
\text { Ind irect labour } & \$ 15000 \
\text { Plant lease } & \$ 75000 \
\text { Depreciation on plant and equipment } & \$ 40000 \
\text { Marketing expense } & \$ 20000 \
\text { Plant utilities } & \$ 15000
\end{array}$ 
Required
a.What actual amount of manufacturing overhead cost was incurred during August 20X9?
b.What amount of manufacturing overhead was allocated to all jobs during August 20X9?
c.For August 20X9,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-labour hour.The following data are obtained from the accounting records for August 20X9:
 $\begin{array}{ll}
\text { Direct materials } & \$ 350000 \
\text { Direct labour (7000 hours } @ \$ 15 / \text { hour) } & \$ 105000 \
\text { Ind irect labour } & \$ 15000 \
\text { Plant lease } & \$ 75000 \
\text { Depreciation on plant and equipment } & \$ 40000 \
\text { Marketing expense } & \$ 20000 \
\text { Plant utilities } & \$ 15000
\end{array}$ 
Required
a.What actual amount of manufacturing overhead cost was incurred during August 20X9?
b.What amount of manufacturing overhead was allocated to all jobs during August 20X9?
c.For August 20X9,was manufacturing overhead underallocated or overallocated? Explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Modern Electronics Manufactures Surround Sound Systems and Applies Manufacturing Costs