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.