Chapter 4: Applying Excel
Allocation base
Estimated manufacturing overhead cost $100,000
Estimated total amount of the allocation base 40,000
Actual manufacturing overhead cost $90,000
Actual total amount of the allocation base 40,000
Enter a formula into each of the cells marked with a ? below
Computation of the predetermined overhead rate
Estimated manufacturing overhead cost $100,000
Estimated total amount of the allocation base 40,000
Predetermined overhead rate $2.50
Computation of underapplied or overapplied manufacturing overhead
Actual manufacturing overhead cost 90,000$
Manufacturing overhead cost applied to Work in Process during the year:
Predetermined overhead rate $2.50
Actual total amount of the allocation base 40,000
Manufacturing overhead applied 100,000$
Underapplied (overapplied) manufacturing overhead (10,000)$