2. Change all of the numbers in the data area of your worksheet so that it looks
ID: 2392841 • Letter: 2
Question
2. Change all of the numbers in the data area of your worksheet so that it looks like this: 4 Allocation base Machine-hours Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base $468,000 72,000 machine- hours $480,800 78,000 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 rate per machine- hour (b)By how much is the manufacturing overhead underapplied or overapplied? manufacturing overheadExplanation / Answer
(a) Pre-determined overhead rate = Estimated manufacturing overhead cost/Estimated machine hours
= 468,000/72,000
= $6.50
(b)
Actual overhead rate = Actual manufacturing overhead cost/Actual machine hours
= 480,800/78,000
= $6.16
Overapplied overhead = Estimated overhead rate - Actual overhead rate
Hence, manufacturing overhead has been overapplied by = 6.50 - 6.16
= $0.34
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.