Question

For Eckstein Company, the predetermined overhead rate is 129% of direct labor cost. During the month, Eckstein incurred $109,000 of factory labor costs, of which $81,400 is direct labor and $27,600 is indirect labor. Actual overhead incurred was $109,306. (a1) Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied

Answer 1

Allocated MOH= $105,006

Explanation:

Giving the following information:

Predetermined manufacturing overhead rate= 129% of direct labor cost.

Actual direct labor= $81,400

To calculate the allocated overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.29*81,400

Allocated MOH= $105,006

Answer 2

Allocated MOH= $105,006

Step-by-step explanation:

Giving the following information:

Predetermined manufacturing overhead rate= 129% of direct labor cost.

Actual direct labor= $81,400

To calculate the allocated overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.29*81,400

Allocated MOH= $105,006