The File conatined this information in an excel spreadsheet.

Chapter 2: Applying Excel
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	?

value: 10.00 points

Note: This question will not be automatically graded. It will be sent to your instructor for review.

Required information

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B13 enter the formula "= B5".

After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text.

Check your worksheet by changing the estimated total amount of the allocation base in the Data area to 60,000 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 $5.00 per machine-hour. If you do not get this answer, find the errors in your worksheet and correct them.

Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2.

References

eBook & Resources

File Attachment QuestionLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts.

Difficulty: 2 MediumLearning Objective: 02-04 Understand the flow of costs in a job-order costing system and prepare appropriate journal entries to record costs.

2.

value: 10.00 points

Required information

2.	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? (Round your answer to 2 decimal places.)

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

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 68,000 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? (Select all that apply.)

4.	Change the estimated total amount of the allocation base back to 72,000 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 $496,000 to $497,600. 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? (Select all that apply.)