Question

In: Accounting

For Eckstein Company, the predetermined overhead rate is 134% of direct labor cost. During the month,...

For Eckstein Company, the predetermined overhead rate is 134% of direct labor cost. During the month, Eckstein incurred $101,000 of factory labor costs, of which $80,600 is direct labor and $20,400 is indirect labor. Actual overhead incurred was $113,004. Compute the amount of manufacturing overhead applied during the month.

Solutions

Expert Solution

Manufacturing Overhead Applied = Direct Labor Cost * Predetermined overhead rate

= 80,600 * 134%

= $108,004


Related Solutions

In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month,...
In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs $210,000 of factory labor costs, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overhead incurred was $200,000. The amount that the overhead applied was overapplied or underapplied was: Group of answer choices $56,000 overapplied $32,000 overapplied $56,000 underapplied $32,000 underapplied
Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate...
Luthan Company uses a plantwide predetermined overhead rate of $22.80 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $273,600 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $268,000 and 11,700 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. manufacturing overhead applied: ____________
Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate...
Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $286,800 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor-hours. The company incurred actual total manufacturing overhead cost of $268,000 and 11,800 total direct labor-hours during the period. Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was...
Osborn Manufacturing uses a predetermined overhead rate of $18.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $221,430 of total manufacturing overhead for an estimated activity level of 12,100 direct labor-hours.      The company incurred actual total manufacturing overhead costs of $217,000 and 11,600 total direct labor-hours during the period.     Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.            2. Assuming that the entire amount of the...
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. This predetermined rate was...
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor-hours.    The company incurred actual total manufacturing overhead costs of $172,500 and 8,250 total direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.          2. Assuming that the entire amount of the underapplied or...
Osborn Manufacturing uses a predetermined overhead rate of $20.20 per direct labor-hour. This predetermined rate was...
Osborn Manufacturing uses a predetermined overhead rate of $20.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $282,800 of total manufacturing overhead for an estimated activity level of 14,000 direct labor-hours. The company actually incurred $279,000 of manufacturing overhead and 13,500 direct labor-hours during the period. Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of...
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the...
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2018, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 401. Job stats...
The predetermined overhead rate for manufacturing overhead for 2016 is $5.00 per direct labor hour. Employees...
The predetermined overhead rate for manufacturing overhead for 2016 is $5.00 per direct labor hour. Employees are expected to earn $8.00 per hour and the company is planning on paying its employees $290,000 during the year. However, only 80% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2016?
Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor.
Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $200,000.Materials requisitions record use of the following materials for the month. Job 136 $ 48,000Job 137 32,000Job 138 19,200Job 139 22,400Job 140 6,400Total direct materials 128,000Indirect materials 19,500Total materials used $ 147,500 Paid $15,000 cash to a computer consultant to reprogram factory equipment.Time tickets record use of the following labor for...
1. Johnson Corporation (a television company) uses a predetermined overhead rate based on direct labor-hours to...
1. Johnson Corporation (a television company) uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 20,000 Direct labor $ 15,000 Rent on factory building $ 25,000 Sales salaries $ 30,000 Depreciation on factory equipment $ 10,000 Indirect labor $ 20,000 Production supervisor's salary $ 10,000 Johnson Corporation estimates that 40,000 direct labor-hours will be worked during the year to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT