Suppose White Company manufactures chairs. One model is the executive chair that sells for $220. White Company projects sales of 500 chairs per month. The production costs are as follows: Direct materials per chair $60 Direct labor per chair 30 Manufacturing overhead per chair 20 White Company has 30 chairs in inventory at the beginning of January and wants to have an ending inventory equal to 30% of next month’s sales. Selling and administrative expenses for this product line are $20,000 per month. What is the budgeted cost of goods sold for January?

The following cost data relate to the manufacturing activities of chang company during the just completed year: manufacturing overhead costs incurred: indirect materials $ 15,800 indirect labor 138,000 property taxes, factory 8,800 utilities, factory 78,000 depreciation, factory 150,600 insurance, factory 10,800 total actual manufacturing overhead costs incurred $ 402,000 other costs incurred: purchases of raw materials (both direct and indirect) $ 408,000 direct labor cost $ 68,000 inventories: raw materials, beginning $ 20,800 raw materials, ending $ 30,800 work in process, beginning $ 40,800 work in process, ending $ 70,800 the company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. a total of 20,500 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.