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	?
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	?

Check your worksheet 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 and the final Underapplied (overapplied) manufacturing overhead should be $(118,000). If you do not get this answer, find the errors in your worksheet and correct them.