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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	57,000	machine-hours
Actual manufacturing overhead cost	$273,700
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)

• The predetermined overhead rate changed.unchecked
• The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead.unchecked
• The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.