This paper circulates around the core theme of Check your worksheet by changing the estimated total amount of the allocation base in the Data area to 60,000 machine-hours, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the predetermined over together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
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 $300,000
Estimated total amount of the allocation base 75,000 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 ?
1. Check your worksheet by changing the estimated total amount of the allocation base in the
Data area to 60,000 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 $5.00 per machine-hour. If you do not get this answer, find the errors in your worksheet
and correct them.
How much is the underapplied (overapplied) manufacturing overhead? Did it change?
Why or why not?
2. Determine the underapplied (overapplied) manufacturing overhead for a different company
with the following data:
Allocation base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Machine-hours
Estimated manufacturing overhead cost . . . . . . . . . . . . . . . . $100,000
Estimated total amount of the allocation base . . . . . . . . . . . 50,000 machine-hours
Actual manufacturing overhead cost . . . . . . . . . . . . . . . . . . $90,000
Actual total amount of the allocation base . . . . . . . . . . . . . . 40,000 machine-hours
3. What happens to the underapplied (overapplied) manufacturing overhead from part (2) if the
estimated total amount of the allocation base is changed to 40,000 machine-hours and everything
else remains the same? Why is the amount of underapplied (overapplied) manufacturing
overhead different from part (2)?
4. Change the estimated total amount of the allocation base back to 50,000 machine-hours
so that the data looks exactly like it did in part (2). Now change the actual manufacturing
overhead cost to $100,000. What is the underapplied (overapplied) manufacturing overhead
now? Why is the amount of underapplied (overapplied) manufacturing overhead different
from part (2)?
