1 Chapter 2: Applying Excel 3 Data 4 Allocation base 5 Estimated manufacturing o

Question

1 Chapter 2: Applying Excel 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base Machine-hours $560,900 79,000 machine $563,700 hours 7 Actual manufacturing overhead cost 8 Actual total amount of the allocation base 83,000 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.) per machine- hour edetermined overhead (b) By how much is the manufacturing overhead underapplied or overapplied? manu overhead

Explanation / Answer

a) predetermined overhead rate estimated MOH/Estimated machine hours 560900/79000 7.1 predetermined overhead rate 7.1 per machine hour b) Actula manufacturing overhead 563,700 applied overhead (7.1*83000)= 589300 over applied by 25,600 over applied manufacturing overhead 25,600 2) predetermined overhead rate estimated MOH/Estimated machine hours 560900/71000 7.9 predetermined overhead rate 7.9 per machine hour Actula manufacturing overhead 563,700 applied overhead (7.9*83000)= 655700 over applied by 92,000 over applied manufacturing overhead 92,000 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 the predetermined overhead rate changed the change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied

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