Amount of under or overapplied manufacturing overhead

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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.

Reference no: EM131295591

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