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The following cost data relate to the manufacturing activities of Black Company during the just completed year: $ Manufacturing overhead costs: Property taxes, factory Utilities,

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The following cost data relate to the manufacturing activities of Black Company during the just completed year: $ Manufacturing overhead costs: Property taxes, factory Utilities, factory Indirect labour Depreciation, factory Insurance, factory Total actual manufacturing overhead costs 3,500 5,750 11,000 25, 250 7,000 $ 52,500 $ 34,500 $ 43,500 Other costs incurred: Purchases of raw materials. Direct labour cost Inventories: Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $ $ $ $ 9,000 7,500 6,750 8,500 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 11,000 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. 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

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