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Data Allocation case Machine-hour Estimated manufacturing overhead cost $300,000

ID: 2486901 • Letter: D

Question

Data Allocation case Machine-hour Estimated manufacturing overhead cost $300,000 Estimated total amount of the allocation base 75,000 Actual manufacturing overhead cost $290,000 Actual total amount of the allocation base 68,000 Enter a formula into each of the cells marked with a ? below Computation of the predetermined overhead rate Estimated manufacturing overhead cost ? Estimated total amount of the allocation base ? Predetermined overhead rate ? Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost ? Manufacturing overhead cost applied to Work in Process during the year: Predetermined overhead rate ? Actual total amount of the allocation base ? Manufacturing overhead applied ? Underapplied (overapplied) manufacturing overhead ?

Explanation / Answer

Enter a formula into each of the cells marked with a ? below

Estimated manufactuirng overhead cost                                 $ 300,000

Estimated total amount of the allocation base                              75,000 machine hours

Pre-determined overhead rate                                                     $4 per hour

Computation of underapplied or overapplied manufcturing overhead

Actual manufacturing overhead cost                                           $290,000

Manufacturing overhead cost applied to work

in porgress during the year                                                            

Predetermined overhead rate                                                      $4 per hour

Actual total amount of the allocation base                                68,000 machine hours

Manufacturing overhead applied                                                $ 272,000

Underapplied overhead (overapplied) manufacturing overhead $18,000