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. 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.

Instructions are listed below.

Explanation:

Giving the following information:

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.

We don't have enough information to calculate the over/under applied overhead and a schedule cost of goods manufactured. But, I can provide with the formulas to calculate 1 and 2:

1) Based on the predetermined overhead rate and the actual machine-hours for the period you can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

With the allocated overhead you can calculate the over/under allocation:

Over/under allocation= real MOH - allocated MOH

If real MOH < allocated MOH= Overhead was overallocated.

2) cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

​participate in networking opportunities that allow you to get to know potential clients, other entrepreneurs, influential people in your community, etc. focus on doing everything you can to cultivate posting word of mouth advertisin