Question
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred:Indirect materials$15,900Indirect labor139,000Property taxes, factory8,900Utilities,
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:Indirect materials$15,900Indirect labor139,000Property taxes, factory8,900Utilities, factory79,000Depreciation, factory150,300Insurance, factory10,900Total actual manufacturing overhead costs incurred$404,000Other costs incurred:Purchases of raw materials (both direct and indirect)$409,000Direct labor cost$69,000Inventories:Raw materials, beginning$20,900Raw materials, ending$30,900Work in process, beginning$40,900Work in process, ending$70,900
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,600 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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