x f Chapter 3: Applying Excel A1 Chapter 3: Applying Excel 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 4 Machine-hours $300,000 6 75,000 machine-hours $290,000 68,000 machine-hours 9 10 Enter a formula into each of the cells marked with a ? below 12 13 14 15 16 17 18 19 20 21 Computation of the predetermined overhead rate Estimated manufacturing overhead cost Estimated total amount of the allocation base Predetermined overhead rate ? machine-hours ? 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 Actual total amount of the allocation base Manufacturing overhead applied ? per machine-hour ? machine-hours Underapplied (overapplied) manufacturing overhead 24 25 26 27 28 23 Chapter 3 Form Required information 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: 1 Chapter 3: Applying Exciel 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base 7 Actual manufacturing overhead cost 8 Actual total amount of the allocation base Machine-hours 774,300 $ 786,200 87,000 machine-hours 84,000 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.) Predetermined overhead per machine- te hour (b) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead 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 89,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this: 1 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 8 Actual total amount of the allocation base Machine-hours $774,300 89,000 machine-hours $ 786,200 84,000 machine-hours (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. The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied. Actual manufacturing overhead cost differs frorm 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 87000 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 $786,200 to $793,300. The data area of your worksheet should now look like this: 1 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 8 Actual total amount of the allocation base 3 Machine-hours $ 774,300 87,000 machine-hours $793,300 84,000 machine-hours (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 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