In: Accounting
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.
Manufacturing Overhead Applied = Direct Labor Cost * Predetermined overhead rate
= 80,600 * 134%
= $108,004