Question
The following cost data relate to the manufacturing activities of Crystal Corporation during the past year: Manufacturing overhead costs incurred: Indirect materials $ 34,000 Indirect
The following cost data relate to the manufacturing activities of Crystal Corporation during the past year: Manufacturing overhead costs incurred: Indirect materials $ 34,000 Indirect labour 190,000 Property taxes, factory 19,500 Utilities, factory 102,000 Depreciation, factory 290,000 Insurance, factory 15,000 Total actual costs incurred $ 650,500 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 500,000 Direct labour cost 85,000 Inventories: Raw materials, beginning $ 40,000 Raw materials, ending 30,000 Work in process, beginning 60,000 Work in process, ending 40,000 The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $33 per machine-hour. A total of 20,000 machine-hours were recorded for the year. Required: Compute the amount of under- or overapplied overhead cost for the year. Prepare a schedule of cost of goods manufactured for the year.
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