Osborn Manufacturing uses a predetermined overhead rate of $19.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $252,830 of total manufacturing overhead for an estimated activity level of 13,100 direct labor-hours. The company actually incurred $249,000 of manufacturing overhead and 12,600 direct labor-hours during the period. ints Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? eBook Print References 3. The gross me dire moeid 1. Manufacturing overhead 2. The gross margin would The following cost data relate to the manufacturing activities of Chang Company during the just completed year: 10 points $ 16,900 149,000 9,900 89,000 316,900 11,900 $593,600 eBook Hint Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending Print $ 419,000 $ 79,000 References $ 21,900 $ 31,900 $ 41,900 $ 71,900 The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 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. Complete this question by entering your answers in the tabs below. The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine- hours were used during the year. 10 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. points Complete this question by entering your answers in the tabs below. eBook Hint Print Required 1 Required 2 References Compute the amount of underapplied or overapplied overhead cost for the year. overhead cost Required 1 Required 2 > Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the year. points Chang Company Schedule of Cost of Goods Manufactured eBook Direct materials: Hint Print References Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured Required 1 Required 2 >
