Chapter 3 - Practice Problems Acct 2123 EXERCISE 3-7 Applying Overhead; Cost of Goods Manufaetu red LO3-3, LO34 ar:relate to the manufacturing activities of Chang Company during the yust Manufacturing overhead costs incurred: Indirect materials $ 15,000 130,000 Indirect labor Property taxes, factory Utilities, factory Depreciation, factory Insurance, factory 8,000 70,000 240,000 10,000 Total actual manufacturing overhead costs incurred s 473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $400,000 $60,000 Direct labor cost Inventories: $20,000 $30,000 $40,000 Raw materials, beginning Raw materials, ending Work in process, beginning Work in process, ending $70,000 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 19,400 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