Chapter $3$: Applying Excel

$2$

$3$

Data

$4$ Allocation base

$5$ Estimated manufacturing overhead cost

$6$ Estimated total amount of the allocation base

$7$ Actual manufacturing overhead cost

Actual total amount of the allocation base

Machine$-$hours

$$300,000$

$75,000$ machine$-$hours

$$290,000$

$68,000$ machine$-$hours

$9$

$10$ Enter a formula into each of the cells marked with a $?$ below

$11$

$12$ Computation of the predetermined overhead rate

$13$ Estimated manufacturing overhead cost

$14$ Estimated total amount of the allocation base

$15$ Predetermined overhead rate

$16$

$17$ Computation of underapplied or overapplied manufacturing overhead

$18$ Actual manufacturing overhead cost

$19$ Manufacturing overhead cost applied to Work in Process during the year:

$20$

Predetermined overhead rate

$21$

Actual total amount of the allocation base

$22$

Manufacturing overhead applied

$23$ Underapplied $($overapplied$)$ manufacturing overhead

$24$

$?$

$?$ machine$-$hours $?$ per machine$-$hour

$?$

$?$ per machine$-$hour $?$ machine$-$hours

$?$

$?$

Required:

$1.$ Check your worksheet by changing the estimated total amount of the allocation base in the Data area to $60,000$ 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 $$5\mathrm{.}00$ per machine$-$hour. If you do not get this answer, find the errors in your worksheet and correct them.

How much is the underapplied $($overapplied$)$ manufacturing overhead? Did it change? Why or why not?

$2.$ Determine the underapplied $($overapplied$)$ manufacturing overhead for a different company with the following data:

Allocation base

Estimated manufacturing overhead cost

Estimated total amount of the allocation base

Actual manufacturing overhead cost

Actual total amount of the allocation base

Machine$-$hours

$$100,000$

$50,000$ machine$-$hours

$$90,000$

$40,000$ machine$-$hours

$3.$ What happens to the underapplied $($overapplied$)$ manufacturing overhead from part $(2)$ if the estimated total amount of the allocation base is changed to $40,000$ machine$-$hours and everything else remains the same? Why is the amount of underapplied $($overapplied$)$ manufacturing overhead different from part $(2)?$

$4.$ Change the estimated total amount of the allocation base back to $50,000$ machine$-$hours so that the data look exactly like they did in part

$(2).$ Now change the actual manufacturing overhead cost to $$100,000.$ What is the underapplied $($overapplied$)$ manufacturing overhead now? Why is the amount of underapplied $($overapplied manufacturing overhead different from part $(2)?5$ Total Manufacturing Cost ADDED to Work$-$in$-$Process

$8$ ACTUAL Manufacturing Overhead Incurred

$9$ Manufacturing Overhead is Over or Under Applied

By how much

complete the excel spreadsheet please.