Question
Data 4 Allocation base Machine-hours 5 Estimated manufacturing overhead cost $448,000 6 Estimated total amount of the allocation base 70,000 machine-hours 7 Actual manufacturing overhead
Data | |||||||||||||||||||||||||||||||||
4 | Allocation base | Machine-hours | |||||||||||||||||||||||||||||||
5 | Estimated manufacturing overhead cost | $448,000 | |||||||||||||||||||||||||||||||
6 | Estimated total amount of the allocation base | 70,000 | machine-hours | ||||||||||||||||||||||||||||||
7 | Actual manufacturing overhead cost | $436,600 | |||||||||||||||||||||||||||||||
8 | Actual total amount of the allocation base 77,000 Machine hours
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By how much is the manufacturing overhead underapplied or overapplied? | |
Change the estimated total amount of the allocation base back to 70,000 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 $436,600 to $428,300. The data area of your worksheet should now look like this:
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Data | ||||
4 | Allocation base | Machine-hours | ||
5 | Estimated manufacturing overhead cost | $448,000 | ||
6 | Estimated total amount of the allocation base | 70,000 | machine-hours | |
7 | Actual manufacturing overhead cost | $428,300 | ||
8 | Actual total amount of the allocation base | 77,000 | machine-hours
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By how much is the manufacturing overhead underapplied or overapplied? | |
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