Question - A budgeted indirect-cost rate of $22 per direct-labor hour. The following data are obtained from the accounting records for August 2013:
Direct materials $350,000
Direct labor (8,000 hours @ $15/hour) $120,000
Indirect labor $ 20,000
Plant lease $ 85,000
Depreciation on plant and equipment $ 40,000
Marketing expense $ 20,000
Plant utilities $ 10,000
Required:
a. What actual amount of manufacturing overhead cost was incurred during August 2013?
b. What amount of manufacturing overhead was allocated to all jobs during August 2013?
c. For August 2013, was manufacturing overhead underallocated or overallocated? Explain.