Reference no: EM132530569

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

Manufacturing overhead costs incurred:

Indirect materials  $15,900

Indirect labor 139,000

Property taxes, factory 8,900

Utilities, factory 79,000

Depreciation, factory 150,300

Insurance, factory 10,900

Total actual manufacturing overhead costs incurred $404,000

Other costs incurred: Purchases of raw materials (both direct and indirect) $409,000

Direct labor cost $69,000

Inventories:

Raw materials, beginning $20,900

Raw materials, ending $30,900

Work in process, beginning $40,900

Work in process, ending $70,900

The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,600 machine-hours were used during the year.

Required:

Question 1. Compute the amount of underapplied or overapplied overhead cost for the year.

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