2 Change all of the numbers in the data area of your workshe

2. Change all of the numbers in the data area of your worksheet so that it looks like this 1 Chapter 3: Applying Excel 2 3 Data 4 Allocation base Machine-hours Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base 7 Actual manufacturing overhead cost 8 Actual total amount of the allocation base $ 600,400 9,000 machine-hours 76,000 machine-hours $ 611,700 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the Predetermined overhead rate? (Round your answer to 2 decimal places.) Pre determined overhead $ 7.60 per machine- $ 7.60 hour rate (b) By how much is the manufacturing overhead underapplied or overapplied? Underapplied manufacturing $ 34,100

Solution

Answer = 1 Predetermined Overhead rate = Estimated Manufacturing Overhead / Estimated Machiene Hours Predetermined Overhead rate = 600400 \"/\" By 79000 MH Predetermined Overhead rate = 7.6 So recovery rate of the overhead is $ 7.60 per machiene Hours Part (B) Actual Overhead applied = Actual machiene Hours Used X Predetermiend overhead rate Actual Overhead applied = 76000 MH \"X\" By 7.6 Actual Overhead applied = 577600 Less: Overhead actually incurred = 611700 Underapplied -34100 Actual overhead charges to manufacturing is @ $ 7.60 per machiene hours and actual machiene hours worked is 76,000 Machiene Hours so total expenses charged to production is only $ 577,600 But the actual overhead incurred in these hours is $ 611,700 so there is less expenses charged to production is $ 34,100. So because of this there is underapplied of overhead is $ 34,100 Answer = Option 3 = Acutal manufacturing costs differs from period to period. Answer = 2 Predetermined Overhead rate = Estimated Manufacturing Overhead / Estimated Machiene Hours Predetermined Overhead rate = 600400 \"/\" By 76000 MH Predetermined Overhead rate = 7.9 So recovery rate of the overhead is $ 7.90 per machiene Hours Part (B) Actual Overhead applied = Actual machiene Hours Used X Predetermiend overhead rate Actual Overhead applied = 76000 MH \"X\" By 7.9 Actual Overhead applied = 600400 Less: Overhead actually incurred = 611700 Underapplied -11300 Actual overhead charges to manufacturing is @ $ 7.90 per machiene hours and actual machiene hours worked is 76,000 Machiene Hours so total expenses charged to production is only $ 600,400 But the actual overhead incurred in these hours is $ 611,700 so there is less expenses charged to production is $ 11,300 So because of this there is underapplied of overhead is $ 11,300 Answer = Option 2 = The change in the actual manufacturing overhead cost directly resulted in a                                           comparable change in the amount of underapplied (overapplied ) manufacturing ovh