3 Either print or make a copy of your worksheet in your work

3. Either print or make a copy of your worksheet in your workbook before proceeding. You will need to refer back to this worksheet. Change the estimated total amount of the allocation base to 65,000 machine- hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like thiS 3 Data 4 Allocation base Machine-hours Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base $468,000 65,000 machine- hours $480,800 78,000 machine- hours 9 (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 change in the estimated total amount of the allocation base affected the redetermined overhead rate The change in the estimated total amount of the allocation base affected the amount of anufacturing overhead applieg Actual manufacturing overhead cost differs from period to period The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base

Solution

a)

Overhead rate = 468000 / 65000

= $7.2 per hours

Actual hours = 78000

Overhead applied = 78000* 7.2

= $561600

Actual overhead = $480800

Overhead overapplied = $561600 -$480800

= $80800

b)

Data of requirement 2 not provided.

Option 1 and 2 are correct. Rest will depend on the data of requirement 2.

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