2. Change all of the numbers in the data area of your worksheet so that it looks like this:

Chapter 3: Applying ExcelDataAllocation baseMachine-hoursEstimated manufacturing overhead cost$547,200Estimated total amount of the allocation base76,000machine-hoursActual manufacturing overhead cost$566,700Actual total amount of the allocation base75,000machine-hours

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

(a) What is the Predetermined overhead rate?

(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 amount of the allocation base to 72,000 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

1

2

3

4

5

6

7

8

Chapter 3: Applying ExcelDataAllocation baseMachine-hoursEstimated manufacturing overhead cost$547,200Estimated total amount of the allocation base72,000machine-hoursActual manufacturing overhead cost$566,700Actual total amount of the allocation base75,000machine-hours

(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?

4. Change the estimated amount of the allocation base back to 76,000 machine-hours, so the data area of you worksheet looks exactly the same as in Requirement 2. Now change the actual manufacturing overhead cost from $566,700 to $560,600. The data area of your worksheet should now look like this:

Chapter 3: Applying ExcelDataAllocation baseMachine-hoursEstimated manufacturing overhead cost$547,200Estimated total amount of the allocation base76,000machine-hoursActual manufacturing overhead cost$560,600Actual total amount of the allocation base75,000machine-hours

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

(b) Why is the underapplied (overapplied) manufacturing overhead different from Requirement 2 above?

Answers needed:

Required 2B: By how much is the manufacturing overhead underapplied or overapplied?

Underapplied manufacturing overhead $________

Required 3A: By how much is the manufacturing overhead underapplied or overapplied?

Overapplied manufacturing overhead $________

Required 4A: By how much is the manufacturing overhead underapplied or overapplied?

Underapplied manufacturing overhead ______