Reference no: EM132744314
Question - The following cost data relate to the manufacturing activities of Black Company during the just-completed year:
Manufacturing overhead costs:
Property taxes, factory $3,800
Utilities, factory 6,200
Indirect labour 11,600
Depreciation, factory 26,000
Insurance, factory 7,600
Total actual manufacturing overhead costs $55,200
Other costs incurred:
Purchases of raw materials $36,000
Direct labour cost $45,600
Inventories:
Raw materials, beginning $9,600
Raw materials, ending $7,800
Work in process, beginning $7,200
Work in process, ending $9,100
The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour; a total of 12,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.
Required -
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Arrange/prepare a schedule of cost of goods manufactured for the year.