Question
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,
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.
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