Do It! Review 15-5 For Eckstein Company, the predetermined overhead rate is 130%

Question

Do It! Review 15-5 For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Total manufacturing overhead incurred, including the indirect labor, was $115,000 Your answer is incorrect. Try again. Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied . LINK TO TEXT Your answer is incorrect. Try again. Determine the amount of under- or overapplied manufacturing overhead. manufacturing overhead $

Explanation / Answer

1) Manufacturing overhead applied = 85000*130% = $110500

2) Under applied overhead = Manufacturing overhead-Actual overhead

= 110500-115000

Under applied overhead = 4500

Under applied manufacturing overhead $4500

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