Question

	A B C
1 2 3 4 5 6 7 8	Chapter 3: Applying Excel Data Allocation base Machine-hours Estimated manufacturing overhead cost $290,700 Estimated total amount of the allocation base 51,000 machine-hours Actual manufacturing overhead cost $281,700 Actual total amount of the allocation base 60,000 machine-hours

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

(b) Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (you can select one or more below)

• The change in the estimated total amount of the allocation base affected the predetermined overhead rate.unchecked
• The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.unchecked
• Actual manufacturing overhead cost differs from period to period.unchecked
• The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base.unchecked

Answer 1

Page No. Date Predelesmuned (a) $290700 51000 sate $5.7/hr. Applied ouerhead- $5:7x 60000 $342000 Actual ouerhead- $281700 Ouerapplicd ouer head = $60300 (9342000-$281700)

b. The reason might be

• The change in the estimated total amount of the allocation base affected the predetermined overhead rate.unchecked
• The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied.unchecke.