The following cost data relate to the manufacturing activities of Chang Company during the just
completed year:
Manufacturing overhead costs incurred:
Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						15000
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						130000
Property taxes, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . .						8000
Utilities, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						70000
Depreciation, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						240000
Insurance, factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						10000
Total actual manufacturing overhead costs incurred . . . . . . . . .						473000
Other costs incurred:
Purchases of raw materials (both direct and indirect) . . . . . . . . . . . . . $400,000
Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000
Inventories:
Raw materials, beginning . . . . . . . . . . . . . . . . . . . . . . . . . . .						20000
Raw materials, ending . . . . . . . . . . . . . . . . . . . . . . . . . . . . .						30000
Work in process, beginning . . . . . . . . . . . . . . . . . . . . . . . . .						40000
Work in process, ending . . . . . . . . . . . . . . . . . . . . . . . . . . .						70000
Finished Goods, beginning . .. . . . .. .. . . .. . . .. . . .. . . . .. . .						47000
Finished Goods, ending . . . . . . .. . . . .. . . . .. .. . . .. . . . .. .						64000
Other Information:
Sales .................................................................................						1754600
Selling Expense						157600
Administrative Expense ......................................................						234000
The company uses a predetermined overhead rate to apply overhead cost to jobs.
The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours
was recorded for 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.