The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:

Manufacturing overhead costs incurred during the year:

Property taxes$1,600

Utilities, factory2,600

Indirect labour5,100

Depreciation, factory13,000

Insurance, factory2,500

Total actual costs$24,800

Other costs incurred during the year:

Purchases of raw materials$15,000

Direct labour cost22,000

Inventories:

Raw Materials, beginning$5,000

Raw Materials, ending4,400

Work in process, beginning3,500

Work in process, ending4,500

The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine hour; a total of 6,000 machine hours were recorded for the year.

Required:

a. Compute the amount of under- or over applied overhead cost for the year just ended.

b. Prepare a schedule of cost of goods manufactured for the year