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 Chapter 4: Applying Excel 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base Machine-hours $297,000 54,000 $280,200 machine hours 7 Actual manufacturing overhead cost 8 Actual total amount of the allocation base 49,000 machine- hours 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.) Predetermined overhead rate per machine- hour (b) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead

Solution

a) predetermined overhead rate Estimated manufacturing overhead cost/estimated machine hours 297000/54000 5.5 predetermined overhead rate 5.5 per machine hour b) Actual manufacturing overhead 280,200 Applied MOH     (5.5*49000 Mh\'s) 269500 overhead under applied 10,700 under applied manufacturing overhead 10,700 c) predetermined overhead rate Estimated manufacturing overhead cost/estimated machine hours 297000/55000 5.4 predetermined overhead rate 5.4 per machine hour Actual manufacturing overhead 280,200 Applied MOH     (5.4*49000 Mh\'s) 264600 overhead under applied 15,600 under applied manufacturing overhead 15,600 d) the change in the estimated total amount of the allocation base affected the predetermined overhead rate the change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied