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

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $25 per machine-hour. A total of 19,400 machine-hours was recorded for 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 theyear.

Manufacturing overhead costs incurred: $ 15,000 Indirect materials Indirect labor 130,000 8,000 Property taxes, factory Utilities, factory 70,000 240,000 Depreciation, factory Insurance, factory 10,000 $473,000 Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect)... $400,000 Direct labor cost $60,000 Inventories: Raw materials, beginning $20,000 Raw materials, ending $30,000 Work in process, beginning $40,000 Work in process, ending $70,000