answer the question marks in the excel sheet below. Answer it in the right format of accounting:

1.

Check your worksheet (by making a new copy of the excel sheet and changing it there) by changing the estimated total amount of the allocation base in the Data area to 50,000 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 $6.00 per machine-hour. If you do not get this answer, find the errors in your worksheet and correct them.

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

A	B	C
Chapter 3: Applying Excel
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$151,200
Estimated total amount of the allocation base	36,000	machine-hours
Actual manufacturing overhead cost	$135,300
Actual total amount of the allocation base	37,000	machine-hours

(a) What is the Predetermined overhead rate? (Round your answer to 2 decimal places.)

Predetermined over head rate ___________ per machine-hour

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

overapplied or underapplied?: _______________. By how much?: _______________

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 42,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

Chapter 3: Applying Excel A	B	C
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$151,200
Estimated total amount of the allocation base	42,000	machine-hours
Actual manufacturing overhead cost	$135,300
Actual total amount of the allocation base	37,000	machine-hours

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

overapplied or underapplied?: _______________. By how much?: _______________

(b) Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply:

- The change in the estimated total amount of the allocation base affected the predetermined overhead rate.

- The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.unanswered

- Actual manufacturing overhead cost differs from period to period.unanswered

- The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base.

4. Change the estimated total amount of the allocation base back to 36,000 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 $135,300 to $140,900. The data area of your worksheet should now look like this:

Chapter 3: Applying Excel A	B	C
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$151,200
Estimated total amount of the allocation base	36,000	machine-hours
Actual manufacturing overhead cost	$140,900
Actual total amount of the allocation base	37,000	machine-hours

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

overapplied or underapplied?: _______________. By how much?: _______________

(b) Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply:

- The predetermined overhead rate changed.unanswered

- The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead.unanswered

- The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.

Chapter 3: 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