Reference no: EM132611495

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:

Indirect materials                                                $16,900

Indirect labor                                                      149,000

Property taxes, factory                                         9,900

Utilities, factory                                                    89,000 

Depreciation, factory                                            316,900

Insurance, factory                                                   11,900

Total actual manufacturing overhead costs incurred   $593,600

Other costs incurred:

Purchases of raw materials (both direct and indirect)  $419,000

Direct labor cost                                                    $79,000

Inventories:

Raw materials, beginning                        $21,900

Raw materials, ending                            $31,900

Work in process, beginning                     $41,900

Work in process, ending                          $71,900

The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine-hours were used during the year.

Required:

Question 1. Compute the amount of under applied or over applied overhead cost for the year.

Question 2. Prepare a schedule of cost of goods manufactured for the year.