The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013: Manufacturing Overhead Costs: Property taxes, factory Utilities, factory Indirect labor Depreciation, factory Insurance, factory Total Actual Manufacturing OH Costs $ 3,000 $ 5,000 $10,000 $24,000 $ 6,000 $48,000 Other Costs Incurred: Purchases of raw materials Direct labor costs $32,000 $40,000 The Black Diamond Ski Company used 10,200 machine hours during the period

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The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013: Manufacturing Overhead Costs: Property taxes, factory Utilities, factory Indirect labor Depreciation, factory Insurance, factory Total Actual Manufacturing OH Costs $ 3,000 $ 5,000 $10,000 $24,000 $ 6,000 $48,000 Other Costs Incurred: Purchases of raw materials Direct labor costs $32,000 $40,000 The Black Diamond Ski Company used 10,200 machine hours during the period. Inventories: Raw Materials, 1/1/13 Raw Materials, 12/31/13 Work in Process, 1/1/13 Work in Process, 12/31/13 $ 8,000 $ 7,000 $ 6,000 $ 7,500 The company uses normal costing to record product costs. The company budgeted for $52,500 in total overhead costs for the year. The cost driver associated with the overhead is machine hours and the company expected to use 10,500 machine hours. REQUIRED: 1.) Compute the amount of over-applied or under-applied overhead cost for the year. 2.) Determine the cost of goods manufactured for the year.