3A. The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:
Indirect materials	$	15,900
Indirect labor		139,000
Property taxes, factory		8,900
Utilities, factory		79,000
Depreciation, factory		150,300
Insurance, factory		10,900
Total actual manufacturing overhead costs incurred	$	404,000
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$	409,000
Direct labor cost	$	69,000
Inventories:
Raw materials, beginning	$	20,900
Raw materials, ending	$	30,900
Work in process, beginning	$	40,900
Work in process, ending	$	70,900

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $20 per machine-hour. A total of 20,600 machine-hours was recorded for the year.

Required:

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

B. Prepare a schedule of cost of goods manufactured for the year.

3.

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:

Machine-hours		81,000
Fixed manufacturing overhead cost	$	1,272,000
Variable manufacturing overhead per computer-hour	$	3.40

During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company