Reference no: EM133014256
Question - The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred: Indirect materials $16,100
Indirect labor 141,000
Property taxes, factory 9,100
Utilities, factory 81,000
Depreciation, factory 149,700
Insurance, factory 11,100
Total actual manufacturing overhead costs incurred $408,000
Other costs incurred: Purchases of raw materials (both direct and indirect) $411,000
Direct labor cost $71,000
Inventories: Raw materials, beginning $21,100
Raw materials, ending $31,100
Work in process, beginning $41,100
Work in process, ending $71,100
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,800 machine-hours were used during the year.
Required -
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.