The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,500 Indirect labor 135,000 Property taxes, factory 8,500 Utilities, factory 75,000 Depreciation, factory 230,700 Insurance, factory 10,500 Total actual manufacturing overhead costs incurred $ 475,200 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 405,000 Direct labor cost $ 65,000 Inventories: Raw materials, beginning $ 20,500 Raw materials, ending $ 30,500 Work in process, beginning $ 40,500 Work in process, ending $ 70,500 The company uses a predetermined overhead rate of $24 per machine-hour to apply overhead cost to jobs. A total of 20,200 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.

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

overhead cost