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A budgeted indirect-cost rate of $22 per direct-labor hour. The subsequent 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. Find what actual amount of manufacturing overhead cost was incurred during August 2013?
b. Find what amount of manufacturing overhead was allocated to all jobs during August 2013?
c. For August 2013, was manufacturing overhead under allocated or over allocated? Describe.
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