The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Question:
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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 theyear.
Transcribed Image Text:
Manufacturing overhead costs incurred: $ 15,000 Indirect materials Indirect labor 130,000 8,000 Property taxes, factory Utilities, factory 70,000 240,000 Depreciation, factory Insurance, factory 10,000 $473,000 Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect)... $400,000 Direct labor cost $60,000 Inventories: Raw materials, beginning $20,000 Raw materials, ending $30,000 Work in process, beginning $40,000 Work in process, ending $70,000
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1 Actual manufacturing overhead costs 473000 Manufacturing overhead c...View the full answer
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Saud Ur Rehman
Evaluating manufacturing processes by designing and conducting research programs; applying knowledge of product design, fabrication, assembly, tooling, and materials; conferring with equipment vendors; soliciting observations from operators. Developing manufacturing processes by studying product requirements; researching, designing, modifying, and testing manufacturing methods and equipment; conferring with equipment vendors. Keeping equipment operational by coordinating maintenance and repair services; following manufacturer's instructions and established procedures; requesting special service.
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Related Book For
Managerial Accounting
ISBN: 9780072834949
11th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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