Reference no: EM13519039

The following cost data relate to the manufacturing activities of the Kanaba Company last year:

Manufacturing overhead costs:
Property taxes	$ 1,500
Utilities, factory	2,500
Indirect labor	5,000
Depreciation, factory	12,000
Insurance, factory	3,000
Total	$24,000
Other costs incurred:
Purchases of direct materials	$16,000
Direct labor cost	$20,000
Inventories:
Direct materials, January 1	$4,000
Direct materials, December 31	$3,500
Work in process, January 1	$3,000
Work in process, December 31	$3,750

The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The rate last year was $5.00 per machine-hour; a total of 5,000 machine-hours were recorded for the year.

Required:

a. Compute the amount of under- or overapplied overhead cost for the year.

b. Prepare a schedule of Cost of Goods Manufactured for the year.