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Amount of underapplied or overapplied overhead costs

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See the attached file for the full problem.

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

The company uses a predetermined overhead rate to apply overhead cost to production. 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.
Prepare a schedule of cost of goods manufactured for the year.

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Response provides the steps to compute the amount of underapplied or overapplied overhead costs.

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See attached file.
Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year.

Amount of under applied or over applied is determined by difference between actual overhead and predetermined ...

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