Question

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: Chapter 3: Applying Excel Data Machine-hours Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base 2$ 175,500 39,000 machine-hours 184,800 35,000 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- hour rate (b) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead st

Answer 1

a)

Predetermined overhead rate = Estimated manufacturing overhead cost/Estimated machine hours

= 175,500/39,000

= $4.5 per machine hour

b)

Applied manufacturing overhead cost = Actual machine hours x Predetermined overhead rate

= 35,000 x 4.5

= $157,500

Actual manufacturing overhead cost = $184,800

Since Applied manufacturing overhead cost is less than Actual manufacturing overhead cost, hence manufacturing overhead is under applied.

Under applied manufacturing overhead = Actual manufacturing overhead cost - Applied manufacturing overhead cost

= $184,800 - $157,500

= $27,300

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