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

Manufacturing overhead costs incurred:
Indirect materials................................................................................$ 34,000
Indirect labour........................................................................................19,000
Property taxes, factory..........................................................................19,500
Utilities, factory....................................................................................102,000
Depreciation, factory...........................................................................290,000
Insurance, factory..................................................................................15,000
Total actual costs incurred...............................................................$650,500
Other costs incurred:
Purchases of raw materials (both direct and indirect)..................$500,000
Direct labour cost...................................................................................85,000
Inventories:
Raw materials, beginning...................................................................$ 30,000
Raw materials, ending............................................................................40,000
Work in process, beginning...................................................................50,000
Work in process, ending........................................................................80,000

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $33 per machine-hour. A total of 20,000 machine-hours were recorded for the year.

Required:

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

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