Question
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials$16,200 Indirect labor142,000
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials$16,200
Indirect labor142,000
Property taxes, factory9,200
Utilities, factory82,000
Depreciation, factory169,900
Insurance, factory11,200
Total actual manufacturing overhead costs incurred $430,500
Other costs incurred:
Purchases of raw materials (both direct and indirect) $412,00
Direct labor cost$72,000
Inventories:
Raw materials, beginning$21,200
Raw materials, ending$ 31,200
Work in process, beginning$ 41,200
Work in process, ending$ 71,200
The company uses a predetermined overhead rate of $21 per machine-hour to apply overhead cost to jobs. A total of 20,900 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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