New Age Electronics Manufactures Surround Sound Systems and Applies Manufacturing

question 97

Essay

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:
$$\begin{array} { l l } \text { Direct materials } & \$ 350,000 \\\text { Direct labor } ( 7,000 \text { hours } @ \$ 15 \text { hour } ) & \$ 105,000 \\\text { Indirect labor } & \$ 25,000 \\\text { Pant lease } & \$ 75,000 \\\text { Depreciation on plant and equipment } & \$ 50,000 \\\text { Marketing expense } & \$ 20,000 \\\text { Pant utilities } & \$ 20,000\end{array}$$ 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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Definitions:

Laid-Back Colleagues

Coworkers who exhibit a relaxed, easygoing attitude towards work, potentially affecting team dynamics and productivity.

Dissatisfied

A state of feeling unhappy or not content with a situation, often leading to the desire for change or improvement.

Repressed Anger

Emotions of anger and frustration that are not expressed openly and are kept suppressed within an individual, potentially leading to psychological issues.

Work Addiction

An uncontrollable need to work incessantly, often at the expense of one’s health, personal relationships, and social functioning.