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? manufacturingExplanation / 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
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