Piedmont Company manufactures lightweight backpacking tents. The following cost data relate to the manufacturing activities of Piedmont Company during the just-completed year:

Manufacturing Overhead Costs incurred:
Indirect Materials	$15,800
Indirect Labor	138,00
Property Taxes, factory	8,800
Utilities, factory	78,000
Depreciation, factory	150,000
Insurance, Factory	10,000
Total Actual manufacturing overhead costs incurred	$402,000

Other costs incurred:
Purchases of Raw Materials (both direct and indirect)	$408,000
Direct Labor Cost	$68,000
Inventories:
Raw Materials, beginning	$20,800
Raw Materials, ending	$30,800
Work in process, beginning	$40,800
Work in process, ending	$70,800

The company uses a predetermined overhead reate of $20 per machine-hour to apply overhead costs to jobs. A total of 20,500 machine-hours were used during the year.

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

2) Prepare a schedule of cost of goods manufactured for the year.