Question - The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Actual manufacturing overhead costs incurred:
Indirect materials $15,000
Indirect labor 130,000
Property taxes, factory 8,000
Utilities, factory 70,000
Depreciation, factory 240,000
Insurance, factory 10,000
Total actual manufacturing overhead costs incurred $473,000
Other costs charged to jobs:
Direct materials $375,000
Direct labor cost $60,000
Inventories:
Work in process, beginning $40,000
Work in process, ending $70,000
The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for the year.
Compute the amount of underapplied or overapplied overhead cost for the year.
Determine the cost of goods manufactured for the year using the indirect method.