Reference no: EM132796351
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:
Problem 1. Compute the amount of underapplied or overapplied overhead cost for the year.
Problem 2. a schedule of cost of goods manufactured for the year.