The following cost data relate to the manufacturing activities of ABC Company during the just completed year:
Manufacturing overhead costs incurred: Indirect materials$16,900Indirect labor 149,000Property taxes, factory 9,900Utilities, factory 89,000Depreciation, factory 316,900Insurance, factory 11,900Total actual manufacturing overhead costs incurred$593,600Other costs incurred: Purchases of raw materials (both direct and indirect)$419,000Direct labor cost$79,000Inventories: Raw materials, beginning$21,900Raw materials, ending$31,900Work in process, beginning$41,900Work in process, ending$71,900
The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine-hours were used during the year.
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.