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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: Other costs incurred: 4
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Other costs incurred: 4 Indirect materials $ Purchases of raw materials 19,000 (both direct and indirect) $ 350,000 Indirect labor 145,000 Direct labor cost $ 51,000 Property taxes, factory 7,500 Inventories: Utilities, factory 62,000 Raw materials, beginning $ 8,000 Depreciation, factory 218,000 Raw materials, ending $ 17,000 Insurance, factory 9.500 Work in process, beginning $ 22,000 Total actual manufacturing $ 461.000 Work in process, ending $ 37.000 overhead costs incurred The company uses a predetermined overhead rate of $48 per machine-hour to apply overhead cost to jobs. A total of 9,700 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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