Benny Industries Allocates Manufacturing Overhead at a Predetermined Rate of 160

question 162

Essay

Benny Industries allocates manufacturing overhead at a predetermined rate of 160% of direct labor cost. Any overallocated or underallocated overhead is closed to the cost of goods sold at the end of the month. Below is information on job 205 that was in process at the end of the month of October
Direct materials $4,000
Direct labor $3,000
Allocated manufacturing overhead $4,800
Jobs 206, 207, and 208 were started in November. Direct materials that were used in November were $26,000 and direct labor costs were $21,000. For the month of November, actual manufacturing overhead was $32,000. The only job still in process on the last day of November was job 104 with the following costs: $3,000 for direct materials and $1,500 for direct labor.
Required:
Calculate the cost of goods manufacturered for November.

Understand what diffusion is and the factors affecting its rate in organizations.

Identify the only firm in Richard Walton's study where significant diffusion occurred.

Understand that complexity affects the likelihood of diffusion.

Recognize the necessity of customization for effective diffusion of innovations.

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Definitions:

Equivalent Value

The same worth or monetary value as something else.

Rate of Return

The positive or negative financial outcome on an investment through a specific duration, indicated as a percent of the cost of the investment.

Scheduled Payments

Pre-determined payments made at regular intervals, such as monthly mortgage or loan payments.

Compounded Quarterly

Interest calculation method where the interest earned is added to the principal every quarter, increasing the amount on which subsequent interest is calculated.