The following cost data relate to the manufacturing activities of Black Company during the just-completed year:

Manufacturing overhead costs:

Property taxes, factory $ 3,800

Utilities, factory 6,200

Indirect labour 11,600

Depreciation, factory 26,000

Insurance, factory 7,600

Total actual manufacturing overhead costs $ 55,200

Other costs incurred:

Purchases of raw materials. $ 36,000

Direct labour cost $ 45,600

Inventories:

Raw materials, beginning $ 9,600

Raw materials, ending $ 7,800

Work in process, beginning $ 7,200

Work in process, ending $ 9,100

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour; a total of 12,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials?none are classified as indirect materials.

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year.

2. Arrange/prepare a schedule of cost of goods manufactured for the year.

BLACK COMPANY Schedule of Cost of Goods Manufactured Direct materials: Raw materials used in production Direct labour Total manufacturing cost Cost of goods manufactured