Ask Question
15 September, 16:46

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 $

+5
Answers (1)
  1. 15 September, 17:04
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “For Eckstein Company, the predetermined overhead rate is 136% of direct labor cost. During the month, Eckstein incurred $102,000 of factory ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers