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2. Change all of the numbers in the data area of your worksheet so that it looks

ID: 2556145 • Letter: 2

Question

2. Change all of the numbers in the data area of your worksheet so that it looks like this Chapter 2: Applying Excel 3 Data 4 Allocation base 5 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 Machine-hours $147,000 35,000 machine- hours $133,800 38,000 hours machine 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.) determined over per machine- hour (b) By how much is the manufacturing overhead underapplied or overapplied? manufacturing

Explanation / Answer

Answer

‘a’

Estimated manufacturing overhead cost

147000

Dollar

Allocation base

35000

machine hours

Predetermined rate

$4.2

$ per machine hour

‘b’

Actual Machine hours

38000

Overheads to be applied at $4.2 per machine hours

$159600

Actual Overhead

$133800

Under applied Overhead

$25800

$25800 manufacturing Overhead underapplied

Estimated manufacturing overhead cost

147000

Dollar

Allocation base

42000

machine hours

Predetermined rate

$3.5

$ per machine hour

Actual Machine hours

38000

Overheads to be applied at $4.2 per machine hours

133000

Actual Overhead

133800

Over applied Overhead

800

Answer 3 ‘a’ $800 manufacturing Overhead Overapplied

Answer 3 ‘b’ Following are correct statements:

Statement 1 and 2

Estimated manufacturing overhead cost

147000

Dollar

Allocation base

35000

machine hours

Predetermined rate

$4.2

$ per machine hour

Actual Machine hours

38000

Overheads to be applied at $4.2 per machine hours

159600

Actual Overhead

137800

Under applied Overhead

21800

Answer 4 ‘a’ $21800 manufacturing Overhead Underapplied

Answer 4 ‘b’ Following are correct statements:

All 3 statements are correct.

Estimated manufacturing overhead cost

147000

Dollar

Allocation base

35000

machine hours

Predetermined rate

$4.2

$ per machine hour