The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred:
Indirect materials $16,800
Indirect labor 148,000
Property taxes, factory 9,800
Utilities, factory 88,000
Depreciation, factory 295,300
Insurance, factory 11,800
Total actual manufacturing overhead costs incurred $569,700
Other costs incurred:
Purchases of raw materials (both direct and indirect) $418,000
Direct labor cost $78,000
Inventories:
Raw materials, beginning $21,800
Raw materials, ending $31,800
Work in process, beginning $41,800
Work in process, ending $71,800
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $27 per machine-hour. A total of 21,500 machine-hours was recorded for 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:
Chang Company
Schedule of cost of Goods Manufactured
Direct materials:
Raw materials are available for use 0
Raw materials used in production 0
$0
Total manufacturing costs 0
Cost of goods manufactured $0