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 | $ | 3,000 |
Utilities, factory | 4,800 | |
Indirect labor | 9,900 | |
Depreciation, factory | 23,900 | |
Insurance, factory | 5,900 | |
Total actual manufacturing overhead costs | $ | 47,500 |
Other costs incurred: | ||
Purchases of raw materials | $ | 31,500 |
Direct labor cost | $ | 39,900 |
Inventories: | ||
Raw materials, beginning | $ | 8,300 |
Raw materials, ending | $ | 6,400 |
Work in process, beginning | $ | 5,200 |
Work in process, ending | $ | 7,400 |
|
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 12,400 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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