The Following Cost Data Relate to the Manufacturing Activities of Falco

The following cost data relate to the manufacturing activities of Falco Industries during the just completed year:
$\begin{array}{lrr}\text { Total actual manufacturing overhead costs incurred (including } \$ 15,000\\ \text {of indirect materials) } &\$353,000\\ \text { Purchases of raw materials (both direct and indirect)} &\$250,000\\ \text { Direct labor cost} &\$135,000\\ \text {Inventories: } &\\ \text { Raw materials, beginning } &\$10,000\\ \text { Raw materials, ending} &\$15,000\\ \text { Work-in-Process, beginning} &\$20,000\\ \text { Work-in-Process, ending } &\$35,000\\\end{array}$

The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A total of 23,000 machine-hours was recorded for the year.
Required:
a. Compute the amount of underapplied or overapplied overhead cost for the year.
b. Prepare a Schedule of Cost of Goods Manufactured for the year.

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