Manufacturing overhead costs incurred during the year:
Propery taxes.........................................$1600
Utilities, factory.......................................2,600
Indirect labor............................................5,100
depreciaion, factory...................................13,000
isnurance, factory.......................................2,500
Total acutual manufacturing overheadcost....$24,800
Other costs incurred during the year:
Purchase of raw materials...........................$15,000
Direct Labor costs.....................................$22,000
Inventories:
Raw materials, beginning............................$5,000
Raw materials, ending................................$4,400
Work in process, beginning........................$3,500
work in process, ending.............................$4,500
The compnay uses a predermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine-hour; a total of 6,000machine-hourss were recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year justended.
b. Prepare a schedule of costof goods manufactured for the year.