Exercise 3-7 (Algo) Applying Overhead; Cost of Goods Manufactured [LO3-3, LO3-4] The following cost data relate to the manufacturing activities of Chang Company during the just completed 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 amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.