Change all of the numbers in the data area of your worksheet so that it looks like this:

1

2

3

4

5

6

7

8

Chapter 3: Applying Excel
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$225,600
Estimated total amount of the allocation base	48,000	machine-hours
Actual manufacturing overhead cost	$207,500
Actual total amount of the allocation base	41,000	machine-hours

(a) What is the Predetermined overhead rate?

(b) By how much is the manufacturing overhead underapplied or overapplied?

Change the estimated total amount of the allocation base to 47,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

1

2

3

4

5

6

7

8

Chapter 3: Applying Excel
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$225,600
Estimated total amount of the allocation base	47,000	machine-hours
Actual manufacturing overhead cost	$207,500
Actual total amount of the allocation base	41,000	machine-hours

a) By how much is the manufacturing overhead underapplied or overapplied?