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Chapter 3: Applying Excel
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$290,700
Estimated total amount of the allocation base	51,000	machine-hours
Actual manufacturing overhead cost	$281,700
Actual total amount of the allocation base	60,000	machine-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? (you can select one or more below)

• The change in the estimated total amount of the allocation base affected the predetermined overhead rate.unchecked
• The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.unchecked
• Actual manufacturing overhead cost differs from period to period.unchecked
• The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base.unchecked