Required information Step 1: Download the Applying Excel form located on the left hand side, under files. If you have trouble, the file is also located in D2L under Course Files and Resources. This Excel worksheet form is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter Step 2: Then enter formulas in all cells that contain question marics. For example, in cell B13 enter the formula - 25. Step 3: 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 woricsheet is operating property, 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 Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions. 2. Change all of the numbers in the data area of your worksheet so that it looks like this: C A 1 Chapter 3: Applying Excel 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost Estimated total amount of the allocation base 6 Actual manufacturing overhead cost 7 Actual total amount of the allocation base 8 Machine-hours 428,400 63,000 machine-hours 5 647,500 50,000 machine hours If your formules are correct, you should get the correct answers to the following questions. (a) What is the Predetermined overhead rate? (Round your answer to 2 decimal places. Predetermined overhead rate per machine-hour (b) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead 3. 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 69,000 machine hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this: A C 1 Chapter 3: Applying Excel 3 Dala Alocation base 4 5 Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead coa Actual total amount of the allocation base Machine-hours S 428,400 62,000 machine hours $ 247.500 52,000 machine hours 6 7 8 (a) By how much is the manufacturing overhead underapplied or overappled? manufacturing overhead ( Why is the amount of underapplied (averappled manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.) The change in the estimated total amount of the allocation base affected the predetermined overhead rate 2 The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied. Actual manufacturing overhead cost differs from period to period. 1 The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base 4. Change the estimated total amount of the allocation base back to 63,000 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 $447,500 to $445,900. The data area of your worksheet should now look like this: A B 1 Chapter 3: Applying Excel 2 3 4 5 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 S 228,400 63,000 machine hours $ 50,000 machine hours 6 445.900 7 8 (a) By how much is the manufacturing overhead underappled or overappled? manufacturing overhead ( Why is the amount of underapplied (averappled manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.) The predetermined overhead rate changed 2 The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underappled Joverapplied manufacturing overhead The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied
