Chang Company provided the following data for this year:

Manufacturing overhead costs incurred:

Indirect materials $ $15,700$

Indirect labor $137,000$

Property taxes, factory $8,700$

Utilities, factory $77,000$

Depreciation, factory $270,900$

Insurance, factory $10,700$

Total actual manufacturing overhead costs incurred $ $520,000$

Other costs incurred:

Purchases of raw materials $($both direct and indirect$)$ $ $407,000$

Direct labor cost $ $67,000$

Inventories:

Raw materials, beginning $ $20,700$

Raw materials, ending $ $30,700$

Work in process, beginning $ $40,700$

Work in process, ending $ $70,700$

The company uses a predetermined overhead rate of $$26$ per machine$-$hour to apply overhead cost to jobs. A total of $20,400$ machine$-$hours were used during the year.

Required:

$1.$Compute the underapplied or overapplied overhead cost.

 

 $2.$Prepare a schedule of cost of goods manufactured. show a step by step calculation for all question using management accounting formulars. indicate if the amount obtain is over or under applied$.$