Reference no: EM133180323

Question - The following cost data relate to the manufacturing activities of Construct Limited last year:

Manufacturing overhead costs:
Property taxes	$6,750
Utilities, factory	8,500
Indirect labor	10,125
Depreciation, factory	26,250
Insurance, factory	8,375
Total	$60,000
Other costs incurred:
Purchases of direct materials	$45,000
Direct labor cost	$48,150
Inventories:
Direct materials, January 1	$5,600
Direct materials, December 31	$7,750
Work in process, January 1	$6,700
Work in process, December 31	$8,200

The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $9.00 per machine-hour; a total of 7,000 machine-hours were recorded for the year.

Required - 1. Calculate the amount of applied overhead.

2. Calculate the amount and specify underapplied or overapplied overhead cost for the year.

3. Prepare a schedule of Cost of Goods Manufactured for the year. Show all items.