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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 $ 15,400
The following cost data relate to the manufacturing activities of Chang Company during the just completed year: |
Manufacturing overhead costs incurred: | ||
Indirect materials | $ | 15,400 |
Indirect labor | 134,000 | |
Property taxes, factory | 8,400 | |
Utilities, factory | 74,000 | |
Depreciation, factory | 191,200 | |
Insurance, factory | 10,400 | |
Total actual manufacturing overhead costs incurred | $ | 433,400 |
Other costs incurred: | ||
Purchases of raw materials (both direct and indirect) | $ | 404,000 |
Direct labor cost | $ | 64,000 |
Inventories: | ||
Raw materials, beginning | $ | 20,400 |
Raw materials, ending | $ | 30,400 |
Work in process, beginning | $ | 40,400 |
Work in process, ending | $ | 70,400 |
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $22 per machine-hour. A total of 20,100 machine-hours was recorded for the year.
Required: |
1. | Compute the amount of underapplied or overapplied overhead cost for the year.
|
please explain how you got the answer.
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