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Overhead cost

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

The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $28 per machine-hour. A total of 21,600 machine-hours was recorded for the year Required

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

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

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory $ 16,900 149,000 9,900 89,000 316,900 11,900 Total actual manufacturing overhead costs incurred $ 593,600 Other costs incurred Purchases of raw materials (both direct and indirect) Direct labor cost $ 419,000 $ 79,000 Inventories Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $ 21,900 $ 31,900 $ 41,900 $ 71,900 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $28 per machine-hour. A total of 21,600 machine-hours was recorded for the year Required 1. Compute the amount of underapplied or overapplied overhead cost for the year. overhead cost 2. Prepare a schedule of cost of goods manufactured for the year.

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