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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$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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