Exercise C: Applying Overhead; Cost of Goods Sold The below cost data relate to the manufacturing activities of Brown Company during the just completed year. Manufacturing costs: Property taxes, factory $2,000 Utilities, factory $6,000 Indirect labor $12,000 Depreciation, factory $15,000 Insurance, factory $7,000 Total actual manufacturing overhead costs $42,000 Other costs incurred: Purchases of raw materials Direct labor cost $30,000 $45,000 Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending Finished goods, beginning Finished goods, ending $10,000 $5,000 $7,000 $6,500 $15,000 $5,000 The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $7 per machine hour; a total of 5,000 units machine hours was recorded for the year. a. Calculate the amount of over or underapplied overhead cost for the year. b. Calculate the cost of goods sold for the year. Do not include any over or underapplied overhead in your cost of goods sold figure