Reference no: EM132841418

Question - Applying Overhead; Cost of Goods Manufactured - The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:

Indirect materials $ 16,300

Indirect labor 143,000

Property taxes, factory 9,300

Utilities, factory 83,000

Depreciation, factory 149,100

Insurance, factory 11,300

Total actual manufacturing overhead costs incurred $412,000

Other costs incurred:

Purchases of raw materials (both direct and indirect) $413,000

Direct labor cost $73,000

Inventories:

Raw materials, beginning $21,300

Raw materials, ending $31,300

Work in process, beginning $41,300

Work in process, ending $71,300

The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 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.