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The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials$15,000Indirect labor$13,000Property taxes,
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred: Indirect materials$15,000Indirect labor$13,000Property taxes, factory$8,000Utilities, factory$70,000Depreciation, factory$240,000Insurance, factory$10,000Total actual manufacturing overhead costs incurred$473,000Other costs incurred: Purchases of raw materials (both direct and indirect)$400,000Direct labor costs$60,000Inventories: Raw materials, beginnings$20,000Raw materials, ending$30,000Work in process, beginning$40,000Work in process, ending $70,000The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 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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