ACCT 2332 I need help with this question Thank you in advanc

ACCT 2332

I need help with this question. Thank you in advance.

I have the first part (a) underapplied - manufacturing overhead - 47,600

I just need help with section (b)

4. Change the estimated total amount of the allocation base back to 83,000 machine-hours, so that the data area of you worksheet looks exactly the same as in Requirement 2. Now change the actual manufacturing overhead cost from $627,200 to $625,200. The data area of your worksheet should now look like this: 1 Chapter 2: Applying Excel 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base Machine-hours $630,800 83,000 machine- hours 7 Actual manufacturing overhead cost $625,200 8 Actual total amount of the allocation base 76,000 machine- hours (a) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead (b)Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (Select all that apply.) The predetermined overhead rate changed The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied

Solution

Predetermined overhead rate = Estimated total manufacturing overhead/Estimated total Machine Hours $630800/83000 $               7.60 Per machine hour Overhead Applied=(Actual Hours*Predetermined overhead rate)=(76000*7.6) $ 577,600.00 Actual Overhead $ 625,200.00 Under Applied Overhead=($577600-$625200) $    47,600.00 Predetermined overhead rate = Estimated total manufacturing overhead/Estimated total Machine Hours $630800/83000 $               7.60 Per machine hour Overhead Applied=(Actual Hours*Predetermined overhead rate)=(76000*7.6) $ 577,600.00 Actual Overhead $ 627,200.00 Under Applied Overhead=($577600-$625200) $    49,600.00 The amount of Underapplied(Overapplied ) manufacturing Overhead different from requirement 2 above because The change in the actual manufacturing overheadcost directlyresulted in a comparable change in the amount of underapplied (Overapplied) manufacturing Overhead. Predetermined rate is same in both requiremet 1 and 2 = $       7.60 Allocation Base i.e 76000 Hours is same in both the requirements.