Supply chain management (SCM) software helps plan and execute ...

[BrownTown3]

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.

[meow1234]

Answer to Question 1

T

Answer to Question 2

Answer:
a. 25,000 + 75,000 + 50,000 + 20,000 = 170,000
b. 7,000  20 per dlh = 140,000
c. Underallocated: Allocated 140,000 which is 30,000 less than actual of 170,000

[BrownTown3]

Thanks for the timely response, appreciate it

[apple]

TYSM