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

If your formulas are correct, you should get the correct answers to the following questions.

$($a$)$ What is the Predetermined overhead rate?

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

Either print or make a copy of your worksheet in your workbook before proceeding. You will need to refer back to this worksheet.

Change the estimated amount of the allocation base to $58,000$ machine$-$hours, but keep everything the same as in Requirement $2.$

The data area of your worksheet should now look like this:

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

$($b$)$ Why is the amount of underapplied $($overapplied$)$ manufacturing overhead different from Requirement $2$ above?

Change the estimated amount of the allocation base back to $53,000$ machine$-$hours, so the data area of you worksheet looks

exactly the same as in Requirement $2.$ Now change the actual manufacturing overhead cost from $$318,000$ to $$316,000.$ The data area

of your worksheet should now look like this:

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

$($b$)$ Why is the underapplied $($overapplied$)$ manufacturing overhead different from Requirement $2$ above?

Complete this question by entering your answers in the tabs below.

What is the Predetermined overhead rate?

Note: Round your answer to $2$ decimal places.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

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

Machine$-$hours

Predetermined overhead rate

$?$

$?$ machine$-$hours

$?$ per machine$-$hour

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

$?$ per machine$-$hour

$?$ machine$-$hours