Info in image "ACC PT1" can be used for image "ACC PT2" 2. Change all of the numbers in the data area of your worksheet so that it looks like this:AC1Chapter 3: Applying Excel3Data4Allocation baseMachine-hoursEstimated manufacturing overhead cost2$713,4006.Estimated total amount of the allocation base87,000 machine-hours7Actual manufacturing overhead cost2$695,9008Actual total amount of the allocation base86,000 machine-hoursIf 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.)Predetermined overhead rate$8.20 per machine-hour(b) By how much is the manufacturing overhead underapplied or overapplied?Overappliedmanufacturing overhead$9,300%24 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 82,000 machine-hours, but keep everything the same as in Requirement2. The data area of your worksheet should now look like this:AC1Chapter 3: Applying Excel23Data4Allocation baseMachine-hoursEstimated manufacturing overhead cost$713,400Estimated total amount of the allocation base82,000 machine-hours7Actual manufacturing overhead cost$695,9008Actual total amount of the allocation base86,000 machine-hours(a) By how much is the manufacturing overhead underapplied or overapplied?manufacturing overhead

Answered: Change the estimated total amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Info in image "ACC PT1" can be used for image "ACC PT2"

2. Change all of the numbers in the data area of your worksheet so that it looks like this:
A
C
1
Chapter 3: Applying Excel
3
Data
4
Allocation base
Machine-hours
Estimated manufacturing overhead cost
2$
713,400
6.
Estimated total amount of the allocation base
87,000 machine-hours
7
Actual manufacturing overhead cost
2$
695,900
8
Actual total amount of the allocation base
86,000 machine-hours
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.)
Predetermined overhead rate
$
8.20 per machine-hour
(b) By how much is the manufacturing overhead underapplied or overapplied?
Overapplied
manufacturing overhead
$
9,300
%24

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 82,000 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
2
3
Data
4
Allocation base
Machine-hours
Estimated manufacturing overhead cost
$
713,400
Estimated total amount of the allocation base
82,000 machine-hours
7
Actual manufacturing overhead cost
$
695,900
8
Actual total amount of the allocation base
86,000 machine-hours
(a) By how much is the manufacturing overhead underapplied or overapplied?
manufacturing overhead

Expert Solution

Step 1

Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products. These costs are not directly related to the units manufactured. So they are allocated to the manufactured units based on estimated cost drivers.

Pre-determined overhead allocate rate: It the rate of allocating the expected overheads to the actual units or hours for a specific accounting period.

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