Reference no: EM132793009
Question - The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred: Indirect materials $15,600
Indirect labor 136,000
Property taxes, factory 8,600
Utilities, factory 76,000
Depreciation, factory 250,700
Insurance, factory 10,600
Total actual manufacturing overhead costs incurred $497,500
Other costs incurred: Purchases of raw materials (both direct and indirect) $406,000
Direct labor cost $66,000
Inventories: Raw materials, beginning $20,600
Raw materials, ending $30,600
Work in process, beginning $40,600
Work in process, ending $70,600
The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 20,300 machine-hours were used during the year.
Required -
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Make a schedule of cost of goods manufactured for the year.