Step 2: Then enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "=B5". Step 3: 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. If you do not get this answer, find the errors in your worksheet and correct them. Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions. Chapter 3: Applying Excel: Exercise 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A B 1 Chapter 3: Applying Excel 2 3 4 Machine-hours $ 489,900 5 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 7 $ 69,000 machine-hours 492,900 70,000 machine-hours 8 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.) Predetermined overhead rate per machine- hour (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 71,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this: A B 1 Chapter 3: Applying Excel 2 3 Data 4 Machine-hours 5 $ 6 Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base 489,900 71,000 machine-hours 492.900 70,000 machine-hours 7 (a) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead (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.) The change in the estimated total amount of the allocation base affected the predetermined overhead rate. 1 The change in the estimated total amount of the allocation base affected the predetermined overhead rate. 2 The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied. 7 Actual manufacturing overhead cost differs from period to period. 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 69,000 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 $492,900 to $484,500. The data area of your worksheet should now look like this: A B 1 Chapter 3: Applying Excel 2 3 4 5 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 6 Machine-hours $ 489,900 69,000 machine-hours $ 484,500 70,000 machine-hours 7 8 (a) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead (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 (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.) 7 The predetermined overhead rate changed. The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead. ? The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied