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.

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.