The following cost data relate to the manufacturing activites of Newberry Company during the just completed year:

Total actual manufacturing overhead costs incurred (includes $15,000 indirect materials) 353,000

Purchases of raw materials 250,000

Direct labor cost 135,000

Inventories

Raw materials, beginning 10,000

raw materials, ending 15,000

Work in process, beginning 20,000

Work in process, ending 35,000

The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A Total of 23,000 machine-hours were recorded for the year.

Required:

a. Compute the amount of underapplied or overapplied manufacturing overhead cost for the year.

b. Prepare a Schedule of Cost of Goods Manufactured for the year.