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Chapter 3 Solutions Manual Content
3-1
Chapter 3: Applying Excel
The completed worksheet is shown below.
Chapter 3 Solutions Manual Content
3-2
Chapter 3: Applying Excel (continued)
The completed worksheet, with formulas displayed, is shown below.
[Note: To display formulas in Excel 2007, select Office Button > Excel
options > Advanced > Show formulas in cells instead of their calculated
amounts. To display the formulas in other versions of Excel, consult Excel
Help.]
Chapter 3 Solutions Manual Content
3-3
Chapter 3: Applying Excel (continued)
1. When the estimated total amount of the allocation base is changed to
60,000 machine-hours, the worksheet changes as show below:
Chapter 3 Solutions Manual Content
3-4
Chapter 3: Applying Excel (continued)
2. With all of the changes in the data, the worksheet should look like the
following:
Chapter 3 Solutions Manual Content
3-5
Chapter 3: Applying Excel (continued)
3. When the estimated total amount of the allocation base is changed to
40,000 machine-hours, the worksheet looks like the following:
The manufacturing overhead is now overapplied by $10,000 rather than
underapplied by $10,000 as it was when the estimated total amount of
Chapter 3 Solutions Manual Content
3-6
Chapter 3: Applying Excel (continued)
4. When the estimated total amount of the allocation base is changed to
back to 50,000 machine-hours and the actual manufacturing overhead
cost is changed to $100,000, the worksheet looks like the following:
In part 2 above, manufacturing overhead was underapplied by $10,000.
Manufacturing overhead is now underapplied by $20,000. This occurred
because the actual manufacturing overhead cost increased by $10,000—
from $90,000 to $100,000. Thus, the amount of the underapplied
overhead also increased by $10,000.
