Supply chain management (SCM) software helps plan and execute steps such as demand planning, acquiring inventory, manufacturing, distributing, and selling the product.
Indicate whether the statement is true or false
Question 2
New Age Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of 20 per direct-labor hour. The following data are obtained from the accounting records for August 2014:
Direct materials 350,000
Direct labor (7,000 hours 15/hour) 105,000
Indirect labor 25,000
Plant lease 75,000
Depreciation on plant and equipment 50,000
Marketing expense 20,000
Plant utilities 20,000
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.
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