Compute the amount of manufacturing overhead


Response to the following problem:

For Eckstein Company, the predetermined overhead rate is 140% of direct labor cost. During the month, Eckstein incurred $108,900 of factory labor costs, of which $87,300 is direct labor and $21,600 is indirect labor. Actual overhead incurred was $126,414. Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or overapplied manufacturing overhead.

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Cost Accounting: Compute the amount of manufacturing overhead
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