The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred:
Indirect materials $15,300
Indirect labor 133,000
Property taxes, factory 8,300
Utilities, factory 73,000
Depreciation, factory 152,100
Insurance, factory 10,300
Total actual manufacturing overhead costs incurred $392,000
Other costs incurred:
Purchases of raw materials (both direct and indirect) $403,000
Direct labor cost $63,000
Inventories: Raw materials, beginning $20,300
Raw materials, ending $30,300
Work in process, beginning $40,300
Work in process, ending $70,300
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year.
Required:
a. Compute the amount of under-applied or over-applied overhead cost for the year.
b. Prepare a schedule of cost of goods manufactured for the year.