om/flow/connect html LE 3 CHAPTERS 2&3 Help The following cost data relate to th
ID: 2335422 • Letter: O
Question
om/flow/connect html LE 3 CHAPTERS 2&3 Help The following cost data relate to the manufacturing activities of Chang Company during the Ranufacturing overhead costs Incurred: Indirect materlals Indirect labor Property taxes, factory utilitles, factory Depreciation, factory Insurance, factory Total actual sanufacturing overhead costs incurred 15,see 35,000 75,000 230,700 Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost 495,000 5 65,000 Raw materlals, beginning Rax materials, ending Work in process, beginning Work in process, ending 20,500 s 4e,5e The company uses a predetermined overhead rate of $24 per machine-hour to apply overhead cost to jobs. A total of 20.200 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 Prew 5016 Next > here to search 8 5 6 7 8 9 F GHExplanation / Answer
Answer:
1
Actual manufacturing overhead costs
475200
Manufacturing overhead cost applied:
20,200 MH × $24 per MH .
484800
Over applied overhead cost
9600
Over applied overhead cost =$9,600
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2
Chang Company
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning .
20500
Add purchases of raw materials.
405000
Raw materials available for use
425500
Deduct raw materials inventory, ending.
-30500
Raw materials used in production
395000
Less indirect materials ..
-15500
379500
Direct labor
65000
Manufacturing overhead cost applied to work in process.
484800
Total manufacturing costs
929300
Add: Work in process, beginning
40500
969800
Deduct: Work in process, ending
-70500
Cost of goods manufactured
899300
Actual manufacturing overhead costs
475200
Manufacturing overhead cost applied:
20,200 MH × $24 per MH .
484800
Over applied overhead cost
9600
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