The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,600 Indirect labor 146,000 Property taxes, factory 9,600 Utilities, factory 86,000 Depreciation, factory 252,700 Insurance, factory 11,600 Total actual manufacturing overhead costs incurred $ 522,500 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 416,000 Direct labor cost $ 76,000 Inventories: Raw materials, beginning $ 21,600 Raw materials, ending $ 31,600 Work in process, beginning $ 41,600 Work in process, ending $ 71,600 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 21,300 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
