PLEASE INCLUDE CALCULATIONS

cost data relate to the manufacturing activities of Chang Company during the just completed year:

Manufacturing overhead costs incurred:

Indirect materials

$

15,800

Indirect labor

138,000

Property taxes, factory

8,800

Utilities, factory

78,000

Depreciation, factory

150,600

Insurance, factory

10,800

Total actual manufacturing overhead costs incurred

$

402,000

Other costs incurred:

Purchases of raw materials (both direct and indirect)

$

408,000

Direct labor cost

$

68,000

Inventories:

Raw materials, beginning

$

20,800

Raw materials, ending

$

30,800

Work in process, beginning

$

40,800

Work in process, ending

$

70,800

The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs.

A total of 20,500 machine-hours were used during the year.

Required:

1. the amount of underapplied or overapplied overhead cost for the year.

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