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Check my workCheck My Work button is now enabled The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

Check my workCheck My Work button is now enabled

 

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

 

       
Manufacturing overhead costs incurred:    
Indirect materials $ 16,300
Indirect labor   143,000
Property taxes, factory   9,300
Utilities, factory   83,000
Depreciation, factory   149,100
Insurance, factory   11,300
Total actual manufacturing overhead costs incurred $ 412,000
Other costs incurred:    
Purchases of raw materials (both direct and indirect) $ 413,000
Direct labor cost $ 73,000
Inventories:    
Raw materials, beginning $ 21,300
Raw materials, ending $ 31,300
Work in process, beginning $ 41,300
Work in process, ending $ 71,300
 

 

The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 machine-hours were used during the year.

 

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year.

2. Prepare a schedule of cost of goods manufactured for the year.

 

Sep 02 2020 View more View Less

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