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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.... Indirect

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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.... Indirect labour... Property taxes, factory.. Utilities, factory .... Depreciation, factory $ 15,000 130,000 8,000 70,000 Insurance, factory.. Total actual costs incurred... 240,000 10,000 $473,000 Other costs incurred: Purchases of raw materials (both direct & indirect).. Direct labour cost..... $400,000 60,000 Inventories: Raw materials, beginning. 20,000 Raw materials, ending... 30,000 Work in process, beginning. Work in process, ending.... 40,000 70,000 The company uses a predetermined overhead rate to apply overhead cost to production. 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 under-or-over applied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.

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