Reference no: EM132533913
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials $17,000
Indirect labor 150,000
Property taxes, factory 10,000
Utilities, factory 90,000
Depreciation, factory 147,000
Insurance, factory 12,000
Total actual manufacturing overhead costs incurred $426,000
Other costs incurred: Purchases of raw materials (both direct and indirect) $420,000
Direct labor cost $80,000
Inventories: Raw materials, beginning $22,000
Raw materials, ending $32,000
Work in process, beginning $42,000
Work in process, ending $72,000
- The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,700 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.