Applying Overhead; Cost of Goods Manufactured

The following cost data relate to the manufacturing activities of Black Company during the just completed year:

 Manufacturing overhead costs:

       Property taxes, factory $ 3,000

       Utilities, factory 5,000

       Indirect labor 10,000

       Depreciation, factory 24,000

       Insurance, factory 6,000

       Total actual manufacturing overhead costs $ 48,000

  Other costs incurred:

       Purchases of raw materials $ 32,000

       Direct labor cost $ 40,000

  Inventories:

       Raw materials, beginning $ 8,000

       Raw materials, ending $ 7,000

       Work in process, beginning

$ 6,000

       Work in process, ending $ 7,500

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 10,000 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.)