Question

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 $

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

Answer 2

Allocated overhead applied= $116008

Step-by-step 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