The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was S25 per machine-hour. A total of 19,400 machine-hours were recorded for the year.
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.

Transcribed Image Text:

Depreciation, factory Manufacturing overhead costs incurred: Indirect materials Indirect labor .... Property taxes, factory Utilities, factory Insurance, factory $15,000 130,000 8,000 Total actual manufacturing overhead costs incurred 70,000 240,000 10,000 $473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $400,000 Direct labor cost $60,000 Inventories: Raw materials, beginning $20,000 Raw materials, ending... $30,000 Work in process, beginning. Work in process, ending $40,000 $70,000