Chapter 3: Applying Excel Data Allocation base Estimated manufacturing overhead

Question

Chapter 3: Applying Excel Data Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base Machine-hours $600,600 78,000 machine-hours $591,000 72,000 machine-hours 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 $600,600 78,000 machine-hours $7.70 per machine-hour $ 591,000 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 $7.70 per machine-hour 72,000 machine-hours $ 554,400 $ 36,600

Explanation / Answer

Answer

The amount of under applied (over applied) manufacturing overhead different from Requirement 2, because:

The amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 because:

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