The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
The company uses a predetermined overhead rate of $48 per machine-hour to apply overhead cost to jobs. A total of 9,700 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.
3. Prepare a schedule of cost of goods sold. Assume that the companys underapplied or overapplied overhead is closed to Cost of Goods Sold.