Reference no: EM131295591
For Eckstein Company, the predetermined overhead rate is 127% of direct labor cost. During the month, Eckstein incurred $108,000 of factory labor costs, of which $87,200 is direct labor and $20,800 is indirect labor. Actual overhead incurred was $115,044.
1. Compute the amount of manufacturing overhead applied during the month.
2. Determine the amount of under- or overapplied manufacturing overhead.
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Amount of under or overapplied manufacturing overhead
: For Eckstein Company, the predetermined overhead rate is 127% of direct labor cost. During the month, Eckstein incurred $108,000 of factory labor costs, of which $87,200 is direct labor and $20,800 is indirect labor. Actual overhead incurred was $115..
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