The Following Cost Data Relate to the Manufacturing Activities of the Kamas

Essay

The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year:
$\text { Manufacturing overhead costs incurred during the year: }$
$\begin{array}{lccc} \text {Property taxes} & \$ 1,600 \\\text {Utilities, factory }& 2,600 \\\text {Indirect labour }& 5,100 \\\text {Depreciation, factory }& 13,000 \\\text {Insurance, factory }& 2,500 \\\text {Total actual costs }& \$ 24,800\\&----\\\text { Other costs incurred during the year: }\\ \text { Purchases of raw materials } & \$ 15,000 \\ \text { Direct labour cost } & 22,000\\\\\text { Inventories:}\\\text { Raw materials, beginning } & \$ 5,000 \\ \text { Raw materials, ending } & 4,400 \\ \text { Work in process, beginning } & 3,500 \\ \text { Work in process, ending } & 4,500\end{array}$





The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was $4.00 per machine hour; a total of 6,000 machine hours were recorded for the year.
Required:
a. Compute the amount of under- or overapplied overhead cost for the year just ended.
b. Prepare a schedule of cost of goods manufactured for the year.