Exercise $3-7($Algo$)$ Applying Overhead; Cost of Goods Manufactured $[$LO$3-3,$ LO$3-4]$

Chang Company provided the following data for this year:

Manufacturing overhead costs incurred:

Indirect materials $ $16,500$

Indirect labor $145,000$

Property taxes, factory $9,500$

Utilities, factory $85,000$

Depreciation, factory $231,700$

Insurance, factory $11,500$

Total actual manufacturing overhead costs incurred $ $499,200$

Other costs incurred:

Purchases of raw materials $($both direct and indirect$)$ $ $415,000$

Direct labor cost $ $75,000$

Inventories:

Raw materials, beginning $ $21,500$

Raw materials, ending $ $31,500$

Work in process, beginning $ $41,500$

Work in process, ending $ $71,500$

The company uses a predetermined overhead rate of $$24$ per machine$-$hour to apply overhead cost to jobs. A total of $21,200$ machine$-$hours were used during the year.

Required:

Compute the underapplied or overapplied overhead cost.

Prepare a schedule of cost of goods manufactured. Complete this question by entering your answers in the tabs below.

Prepare a schedule of cost of goods manufactured.

$\backslash$table$[[$Chang Company$],[$Schedule of Cost of Goods Manufactured$],[$Direct materials:$],[$Beginning raw materials inventory,$$215,000,,],[$Add: Purchases of raw materials,$145,000,,],[$Total raw materials available$],[$Add: Ending raw materials inventory$],[$Raw materials used in production$],[$Less: Indirect materials used in production$],[$Direct materials used in production,,$$,],[$Direct labor$],[$Manufacturing overhead applied to work in process$],[$Cost of goods manufactured$],[$Total manufacturing costs added to production,,,$0],[$Total manufacturing costs to account for,,,$0],[$Less: Ending work in process inventory$],[$Cost of goods manufactured,,,$]]$Compute the underapplied or overapplied overhead cost.

Overapplied overhead cost $$96,000$