Question
The following cost data relate to the manufacturing activities of Black Company during the just completed year: Manufacturing overhead costs incurred: Property taxes, factory $
The following cost data relate to the manufacturing activities of Black Company during the just completed year: Manufacturing overhead costs incurred: Property taxes, factory $ 2,900 Utilities, factory 5,000 Indirect labor 9,900 Depreciation, factory 23,900 Insurance, factory 5,800 Total actual manufacturing overhead costs $ 47,500 Other costs incurred: Purchases of raw materials $ 32,500 Direct labor cost $ 40,000 Inventories: Raw materials, beginning $ 8,100 Raw materials, ending $ 6,500 Work in process, beginning $ 5,800 Work in process, ending $ 7,700 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 11,600 machine-hours was recorded for the year. All raw materials ultimately become direct materialsnone 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 using the indirect method. (Enter all deductions as a negative.)
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