How much is the manufacturing overhead underapplied

Question

Change all of the numbers in the data area of your worksheet so that it looks like this:

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. Omit the "$" sign in your response.)

Predetermined overhead rate

$  per machine-hour

(b)	By how much is the manufacturing overhead underapplied or overapplied? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

(Click to select)OverappliedUnderapplied manufacturing overhead

$

Requirement 3:

Either print or make a copy of your worksheet in your workbook before proceeding. You will need to refer back to this worksheet.

Change the estimated total amount of the allocation base to 95,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this:

(a)	By how much is the manufacturing overhead underapplied or overapplied? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

(Click to select)UnderappliedOverapplied manufacturing overhead

$

(b)	Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
	The change in the estimated total amount of the allocation base affected the predetermined overhead rate. The change in the estimated total amount of the allocation base affected the amount of manufacturing overhead applied. Actual manufacturing overhead cost differs from period to period. The estimated manufacturing overhead cost did not change in proportion to the change in the estimated total amount of the allocation base.

Requirement 4:

Change the estimated total amount of the allocation base back to 90,000 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 $866,300 to $857,800. The data area of your worksheet should now look like this:

(a)	By how much is the manufacturing overhead underapplied or overapplied? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

(Click to select)OverappliedUnderapplied manufacturing overhead

$

(b)	Why is the amount of underapplied (overapplied) manufacturing overhead different from Requirement 2 above? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
	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 manufacturing overhead applied changed.