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Chapter 3: Applying Excel

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Question;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-hoursActual manufacturing overhead cost $290,000 Actual total amount of the allocation base 68,000 machine-hoursEnter 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-hoursPredetermined overhead rate ? per machine-hourComputation 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-hourActual total amount of the allocation base ? machine-hoursManufacturing overhead applied ?Underapplied (overapplied) manufacturing overhead ?1. Check your worksheet by changing the estimated total amount of the allocation base in theData area to 60,000 machine-hours, keeping all of the other data the same as in the originalexample. If your worksheet is operating properly, the predetermined overhead rate shouldnow be $5.00 per machine-hour. If you do not get this answer, find the errors in your worksheetand 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 companywith the following data:Allocation base................................... Machine-hoursEstimated manufacturing overhead cost................ $100,000Estimated total amount of the allocation base........... 50,000 machine-hoursActual manufacturing overhead cost.................. $90,000Actual total amount of the allocation base.............. 40,000 machine-hours3. What happens to the underapplied (overapplied) manufacturing overhead from part (2) if theestimated total amount of the allocation base is changed to 40,000 machine-hours and everythingelse remains the same? Why is the amount of underapplied (overapplied) manufacturingoverhead different from part (2)?4. Change the estimated total amount of the allocation base back to 50,000 machine-hoursso that the data looks exactly like it did in part (2). Now change the actual manufacturingoverhead cost to $100,000. What is the underapplied (overapplied) manufacturing overheadnow? Why is the amount of underapplied (overapplied) manufacturing overhead differentfrom part (2)?

 

Paper#40542 | Written in 18-Jul-2015

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