Question

For Eckstein Company, the predetermined overhead rate is 137% of direct labor cost. During the month, Eckstein incurred $104,000 of factory labor costs, of which $85,200 is direct labor and $18,800 is indirect labor. Actual overhead incurred was $121,224. Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied t Determine the amount of under- or overapplied manufacturing overhead. manufacturing overhead $

Answer 1

* Calculation : - = manufacturing overhead applied Direct labor X Predetermined Cost heate 85 200 X 137.). B 116724 - less Actual overhead = Applied overhead = Lunder applied overhead 121224 116724 & 4500 manufacturing of applied by multiplying Estimated & Predetermined leade. can be calculated Direct labor cost. Deduct applied overhead to calculate under / over from applied Actual overhead overhead. Here applied Overhead so overhead is less than actual overhead is under applied