Following cost data relate to the manufacturing activities

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Reference no: EM131129989

The following cost data relate to the manufacturing activities of Black Company during the just completed year:





Manufacturing overhead costs:

Property taxes, factory $ 2,900
Utilities, factory
4,800
Indirect labor
9,900
Depreciation, factory
23,800
Insurance, factory
5,900



Total actual manufacturing overhead costs $ 47,300





Other costs incurred:

Purchases of raw materials $ 31,300
Direct labor cost $ 39,600
Inventories:

Raw materials, beginning $ 8,100
Raw materials, ending $ 6,700
Work in process, beginning
$ 5,100
Work in process, ending $ 7,900

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,800 machine-hours was 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.

Reference no: EM131129989

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