2. The following cost data relate to the manufacturing activities of the Kanaba Corporation last year:

	Manufacturing overhead costs:
	Property taxes	$3,000
	Utilities, factory	12,300
	Indirect labor	7,250
	Depreciation, factory	12,000
	Insurance, factory	3,000
	Total	$37,550
	Other costs incurred:
	Purchases of direct materials	$16,000
	Direct labor cost	$20,000
	Inventories:
	Direct materials, January 1	$4,000
	Direct materials, December 31	$3,500
	Work in process, January 1	$3,000
	Work in process, December 31	$3,750

The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $6.50 per machine-hour; a total of 6,250 machine-hours were recorded for the year.

Required:

a. Compute the amount of underapplied or overapplied overhead cost for the year.

b. Prepare a schedule of Cost of Goods Manufactured for the year.