Question & Answer: The following cost data relate to the manufacturing activities of Black Company during the just complete…..

The following cost data relate to the manufacturing activities of Black Company during the just completed year: Manufacturing overhead costs incurred: Property taxes, factory $ 2,900 Utilities, factory 4,900 Indirect labor 9,900 Depreciation, factory 23,900 Insurance, factory 5,900 Total actual manufacturing overhead costs $ 47,500 Other costs incurred: Purchases of raw materials $ 32,700 Direct labor cost $ 41,000 Inventories: Raw materials, beginning $ 8,900 Raw materials, ending $ 6,500 Work in process, beginning $ 5,500 Work in process, ending $ 7,000 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 12,100 machine-hours was 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 using the indirect method. (Enter all deductions as a negative.)