Check your worksheet by changing the estimated total amount of the allocation base in the Data area to 50,000 machine-hours, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the predetermined overhead rate should now be $6.00 per machine-hour. If you do not get this answer, find the errors in your worksheet and correct them.

Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$300,000
Estimated total amount of the allocation base	75,000	machine-hours
Actual manufacturing overhead cost	$290,000
Actual total amount of the allocation base	68,000	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	?	machine-hours
Predetermined overhead rate	?	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	?	per machine-hour
Actual total amount of the allocation base	?	machine-hours
Manufacturing overhead applied	?
Underapplied (overapplied) manufacturing overhead	?

Change all of the numbers in the data area of your worksheet so that it looks like this:
	Chapter 3: Applying Excel
	2
	3	Data
	4	Allocation base	Machine-hours
	5	Estimated manufacturing overhead cost	$135,300
	6	Estimated total amount of the allocation base	33,000	machine-hours
	7	Actual manufacturing overhead cost	$131,700
	8	Actual total amount of the allocation base	37,000	machine-hours
	9

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

What is the predetermined overhead rate? (Round your answer to 2 decimal places.)

Predetermined overhead________per machine hr

	By how much is the manufacturing overhead underapplied or overapplied?

______manufact overhead______

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 total amount of the allocation base to 41,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

A	B	C	D
1	Chapter 3: Applying Excel
2
3	Data
4	Allocation base	Machine-hours
5	Estimated manufacturing overhead cost	$135,300
6	Estimated total amount of the allocation base	41,000	machine-hours
7	Actual manufacturing overhead cost	$131,700
8	Actual total amount of the allocation base	37,000	machine-hours

By how much is the manufacturing overhead underapplied or overapplied?

______manufact overhead_______

Change the estimated total amount of the allocation base back to 33,000 machine-hours, so that the data area of you worksheet looks exactly the same as in Requirement 2. Now change the actual manufacturing overhead cost from $131,700 to $133,000. The data area of your worksheet should now look like this:
	Chapter 3: Applying Excel
	2
	3	Data
	4	Allocation base	Machine-hours
	5	Estimated manufacturing overhead cost	$135,300
	6	Estimated total amount of the allocation base	33,000	machine-hours
	7	Actual manufacturing overhead cost	$133,000
	8	Actual total amount of the allocation base	37,000	machine-hours
	9

By how much is the manufacturing overhead underapplied or overapplied?

______manufact overhead______