The following cost data relate to the manufacturing activities of Chang Company during the just...
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Accounting
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials
$
16,200
Indirect labor
142,000
Property taxes, factory
9,200
Utilities, factory
82,000
Depreciation, factory
169,900
Insurance, factory
11,200
Total actual manufacturing overhead costs incurred
$
430,500
Other costs incurred:
Purchases of raw materials (both direct and indirect)
$
412,000
Direct labor cost
$
72,000
Inventories:
Raw materials, beginning
$
21,200
Raw materials, ending
$
31,200
Work in process, beginning
$
41,200
Work in process, ending
$
71,200
The company uses a predetermined overhead rate of $21 per machine-hour to apply overhead cost to jobs. A total of 20,900 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.
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