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The Excel worksheet form that appears below is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter.

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

Allocation base- Machine hours

Estimated manufacturing overhead cost $531,300

Estimated total amount of the allocation base $69,000 machine-hours

Actual manufacturing overhead cost $526,400

Actual total amount of the allocation base $70,000 Machine hours

If your formulas are correct, you should get the correct answers to the following questions.

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

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

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 77,000 machine-hours, but keep everything the same as in Requirement 2.

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