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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 $ 16,800
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: |
Manufacturing overhead costs incurred: | ||
Indirect materials | $ | 16,800 |
Indirect labor | 148,000 | |
Property taxes, factory | 9,800 | |
Utilities, factory | 88,000 | |
Depreciation, factory | 295,300 | |
Insurance, factory | 11,800 | |
Total actual manufacturing overhead costs incurred | $ | 569,700 |
Other costs incurred: | ||
Purchases of raw materials (both direct and indirect) | $ | 418,000 |
Direct labor cost | $ | 78,000 |
Inventories: | ||
Raw materials, beginning | $ | 21,800 |
Raw materials, ending | $ | 31,800 |
Work in process, beginning | $ | 41,800 |
Work in process, ending | $ | 71,800 |
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $27 per machine-hour. A total of 21,500 machine-hours was recorded for 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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