ACCT 2332 I need help with this question. Thank you in advance. I have the first

Question

ACCT 2332

I need help with this question. Thank you in advance.

I have the first part (a) underapplied - manufacturing overhead - 47,600

I just need help with section (b)

4. Change the estimated total amount of the allocation base back to 83,000 machine-hours, so that the data area of you worksheet looks exactly the same as in Requirement 2. Now change the actual manufacturing overhead cost from $627,200 to $625,200. The data area of your worksheet should now look like this: 1 Chapter 2: Applying Excel 2 3 Data 4 Allocation base 5 Estimated manufacturing overhead cost 6 Estimated total amount of the allocation base Machine-hours $630,800 83,000 machine- hours 7 Actual manufacturing overhead cost $625,200 8 Actual total amount of the allocation base 76,000 machine- hours (a) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead (b)Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (Select all that apply.) The predetermined overhead rate changed The change in the actual manufacturing overhead cost directly resulted in a comparable change in the amount of underapplied (overapplied) manufacturing overhead The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied

Explanation / Answer

Predetermined overhead rate = Estimated total manufacturing overhead/Estimated total Machine Hours $630800/83000 $               7.60 Per machine hour Overhead Applied=(Actual Hours*Predetermined overhead rate)=(76000*7.6) $ 577,600.00 Actual Overhead $ 625,200.00 Under Applied Overhead=($577600-$625200) $    47,600.00 Predetermined overhead rate = Estimated total manufacturing overhead/Estimated total Machine Hours $630800/83000 $               7.60 Per machine hour Overhead Applied=(Actual Hours*Predetermined overhead rate)=(76000*7.6) $ 577,600.00 Actual Overhead $ 627,200.00 Under Applied Overhead=($577600-$625200) $    49,600.00 The amount of Underapplied(Overapplied ) manufacturing Overhead different from requirement 2 above because The change in the actual manufacturing overheadcost directlyresulted in a comparable change in the amount of underapplied (Overapplied) manufacturing Overhead. Predetermined rate is same in both requiremet 1 and 2 = $       7.60 Allocation Base i.e 76000 Hours is same in both the requirements.

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