Question

Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B13 enter the formula "= B5". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the example in the text. 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. Chapter 3: Applying Excel
Data
Allocation base	Machine-hours
Estimated manufacturing overhead cost	$300,000
Estimated total amount of the allocation base	75,000	machine-hours
Actual manufacturing overhead cost	$290,000
Actual total amount of the allocation base	68,000	machine-hours
Enter a formula into each of the cells marked with a ? below
Computation of the predetermined overhead rate
Estimated manufacturing overhead cost	?
Estimated total amount of the allocation base	?	machine-hours
Predetermined overhead rate	?	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	?	per machine-hour
Actual total amount of the allocation base	?	machine-hours
Manufacturing overhead applied	?
Underapplied (overapplied) manufacturing overhead	?

Answer 1

Allocation Base	Machine Hours
Estimated Manufacturing Overheads	300000
Estimated total amount of allocation base	75000	machine hours
Actual Manufacturing Overhead	290000
Actual Amunt of allocation base	68000	machine hours
Estimated Manufacturing Overheads	300000
Estimated total amount of allocation base	75000	machine hours
Predetermined Overhead rate	4	per machine hour
Actua Manufacturing Overhead cost	290000
Manufacturingoverhead cost applied to WIP during the year
Predetermined Overhead rate	4	per machine hour
Actual Total Amountof Allocation base	68000	machine hours
Manufacturing Overhead applied	272000
Underapplied(ooverapplied) manufacturing overhead	28000