Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials.... Indirect
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started