3. The following cost data relate to the manufacturing activities of...
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Accounting
3.
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials
$
16,500
Indirect labor
145,000
Property taxes, factory
9,500
Utilities, factory
85,000
Depreciation, factory
231,700
Insurance, factory
11,500
Total actual manufacturing overhead costs incurred
$
499,200
Other costs incurred:
Purchases of raw materials (both direct and indirect)
$
415,000
Direct labor cost
$
75,000
Inventories:
Raw materials, beginning
$
21,500
Raw materials, ending
$
31,500
Work in process, beginning
$
41,500
Work in process, ending
$
71,500
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $24 per machine-hour. A total of 21,200 machine-hours was recorded for the year.
Required:
A.
Compute the amount of underapplied or overapplied overhead cost for the year.
B.
Prepare a schedule of cost of goods manufactured for the year
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