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 $

Question

Weston Grant

Business

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 $

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Margaret Gentry · Answer 1

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