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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 $ 15,300
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred: | ||
Indirect materials | $ | 15,300 |
Indirect labor | 133,000 | |
Property taxes, factory | 8,300 | |
Utilities, factory | 73,000 | |
Depreciation, factory | 152,100 | |
Insurance, factory | 10,300 | |
Total actual manufacturing overhead costs incurred | $ | 392,000 |
Other costs incurred: | ||
Purchases of raw materials (both direct and indirect) | $ | 403,000 |
Direct labor cost | $ | 63,000 |
Inventories: | ||
Raw materials, beginning | $ | 20,300 |
Raw materials, ending | $ | 30,300 |
Work in process, beginning | $ | 40,300 |
Work in process, ending | $ | 70,300 |
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during 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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