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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