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

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


Manufacturing overhead costs:
Property taxes, factory	$	3,900
Utilities, factory		6,350
Indirect labour		11,800
Depreciation, factory		26,250
Insurance, factory		7,800

Total actual manufacturing overhead costs	$	56,100

Other costs incurred:
Purchases of raw materials.	$	36,500
Direct labour cost	$	46,300
Inventories:
Raw materials, beginning	$	9,800
Raw materials, ending	$	7,900
Work in process, beginning	$	7,350
Work in process, ending	$	9,300

The company uses a predetermined overhead rate to apply overhead cost to production. The rate for the year was $5 per machine-hour; a total of 12,000 machine-hours were recorded for the year. All raw materials ultimately become direct materials—none are classified as indirect materials.

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.

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Expert Solution

ekkarill92 answered 1 year ago

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