Reference no: EM132556172
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials$15,800
Indirect labor 138,000
Property taxes, factory 8,800
Utilities, factory 78,000
Depreciation, factory 150,600
Insurance, factory 10,800
Total actual manufacturing overhead costs incurred$402,000
Other costs incurred:
Purchases of raw materials (both direct and indirect)$408,000
Direct labor cost$68,000
Inventories:
Raw materials, beginning$20,800
Raw materials, ending$30,800
Work in process, beginning$40,800
Work in process, ending$70,800
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,500 machine-hours were used during the year.
Required:
Question 1. Compute the amount of underapplied or overapplied overhead cost for the year.
Question 2. Prepare schedule of cost of goods manufactured for the year.