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29 May, 19:20

For Eckstein Company, the predetermined overhead rate is 136% of direct labor cost. During the month, Eckstein incurred $102,000 of factory labor costs, of which $85,300 is direct labor and $16,700 is indirect labor. Actual overhead incurred was $121,008. Collapse question part (a1) Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied $

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  1. 29 May, 20:36
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    Allocated overhead applied = $116008

    Explanation:

    Giving the following information:

    The predetermined overhead rate is 136% of direct labor cost.

    During the month, Eckstein incurred $102,000 of factory labor costs.

    $85,300 is direct labor and $16,700 is indirect labor.

    The actual overhead incurred was $121,008.

    We need to determine the allocated overhead applied:

    allocated overhead applied = overhead rate*direct labor

    allocated overhead applied = 1.36*85300 = $116008
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