Question - For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $108,300 of factory labor costs, of which $89,180 is direct labor and $19,120 is indirect labor. Actual overhead incurred was $120,115.
Compute the amount of manufacturing overhead applied during the month. Determine the amount of under- or overapplied manufacturing overhead.