For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which

$85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was

$115,000. Compute the amount of manufacturing overhead applied during the month.

Determine the amount of under- or overapplied manufacturing overhead.

AppendixLO1