Compute the underapplied or overapplied overhead cost

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Reference no: EM133922997

Problem

Chang Company provided the following data for this year:

Manufacturing overhead costs incurred:
Indirect materials	$ 15,000
Indirect labor	130,000
Property taxes, factory	8,000
Utilities, factory	70,000
Depreciation, factory	240,000
Insurance, factory	10,000
Total actual manufacturing overhead costs incurred	$ 473,000
Other costs incurred:
Purchases of raw materials (both direct and indirect)	$ 400,000
Direct labor cost	$ 60,000
Inventories:
Raw materials, beginning	$ 20,000
Raw materials, ending	$ 30,000
Work in process, beginning	$ 40,000
Work in process, ending	$ 70,000

The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 machine-hours were used during the year.

Task

I. Compute the underapplied or overapplied overhead cost. Get the instant assignment help.
II. Prepare a schedule of cost of goods manufactured.

Reference no: EM133922997

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