Change the estimated total amount of the allocation base to 82,000 machine-hours, but keep everything the same as in Requirement 2. The data area of your worksheet should now look like this: A 1 Chapter 3: Applying Excel 2 Data 4 Allocation base Machine-hours Estimated manufacturing overhead cost $ 713,400 6 Estimated total amount of the allocation base 82,000 machine-hours 7 Actual manufacturing overhead cost $ 695,900 8 Actual total amount of the allocation base 86,000 machine-hours (a) By how much is the manufacturing overhead underapplied or overapplied? manufacturing overhead

Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products. These costs are not directly related to the units manufactured. So they are allocated to the manufactured units based on estimated cost drivers.

Pre-determined overhead allocate rate: It the rate of allocating the expected overheads to the actual units or hours for a specific accounting period.