2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: B 1 Chapter 2: Applying Excel Cost summary for Job 408 2 3 4 5 Machine-hours Direct labor hours Direct materials cost Direct labor cost Department Milling Assembly 70 2 5 40 880$ 440 95 $ 640 6 7 $ $ 8 In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) Selling price for Job 408 $ 3,801.00 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine hours in the Assembly Department increases from 3,000 machine-hours to 6,000 machine-hours? (Round your final answer to 2 decimal places.) Selling price for Job 408 4. Restore the total number of machine-hours in the Assembly Department to 3,000 machine-hours. And keep the job data the same as it was in Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor-hours to 40,000 direct labor-hours? (Round your final answer to 2 decimal places.) Selling price for Job 408 EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Milling Department Overhead Cost(Y): Assembly Department Overhead Cost(Y): = $390,000 + ($2.00 per MH X 60,000 MHs) = $500,000 + ($3.75 per DLH x 80,000 DLHS) = $390,000+ $120,000 = $500,000+ $300,000 = $510,000 = $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: Assembly Department Overhead Rate: $510,000 $800.000 60,000 machine-hours 80.000 direct labor-hours $8.50 per machine hour = $10.00 per direct labor-hour Step 3: Calculate the amount of overhead applied from both departments to Job 407. Milling Department Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 $8.50 per MH x 90 MHs = $10.00 per DLH X 20 DLHS = $765 = $200 Step 4: Calculate the total job cost for Job 407 Direct materials Direct labor Manufacturing overhead applied Total cost of Job 407 Milling Assembly $800 $370 $ 70 $280 $765 $200 Total $1,170 350 965 $2,485 Step 5: Calculate the selling price for Job 407. Total cost of Job 407 Markup ($2,485 x 75%) Selling price of Job 407 $2.485.00 1.863.75 $4.348.75 A 1 Chapter 2: Applying Excel NOWN 3 Data 4 Markup on job cost 75% 13 Department Milling Assembly 8 Machine-hours 60,000 3,000 9 Direct labor-hours 8,000 80,000 10 Total faced manufacturing overhead cost $390,000 $500,000 11 Variable manufacturing overhead per machine-hour $2.00 12 Variable manufacturing overhead per direct labor-hour $3.75 14 Cost summary for Job 407 Department 15 Miling Assembly 16 Machine-hours 90 4 17 Direct labor-hours 5 20 18 Direct materials $800 $370 19 Direct labor cost $70 $280 20 21 Enter a formula into each of the cells marked with a ? below 22 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 Milling Assembly 25 Total fixed manufacturing overhead cost $390,000 $500,000 26 Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.75 27 Total machine-hours or direct labor-hours 60,000 80,000 28 Total variable manufacturing overhead $120,000 $300,000 29 Total manufacturing overhead $510,000 $800,000 30 31 Step 2: Calculate the predetermined overhead rate in each department 32 Milling Assembly 33 Total manufacturing overhead $510,000 $800,000 34 Total machine-hours or direct labor-hours 60,000 80,000 35 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 36 37 Step 3: Calculate the amount of overhead applied from both departments to Job 407 38 Milling Assembly 39 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 40 Machine-hours or direct labor-hours for the job 90 20 Manufacturinn warhead annliol 6765 200.00 Chapter 2 Form + 1 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour or direct labor-hour Total machine-hours or direct labor-hours Total variable manufacturing overhead Total manufacturing overhead $390,000 $2.00 60,000 $120,000 $510,000 $600,000 $3.75 80,000 $300,000 $800,000 Step 2: Calculate the predetermined overhead rate in each department Total manufacturing overhead Total machine-hours or direct labor-hours Predetermined overhead rate per machine-hour or direct labor-hour Miling $510,000 60,000 $8.50 Assembly $800,000 80,000 $10.00 Assembly $10.00 20 $200.00 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Milling Predetermined overhead rate per machine-hour or direct labor-hour $8.50 Machine-hours or direct labor-hours for the job 90 Manufacturing overhead applied $765.00 Step 4: Calculate the total job cost for Job 407 Milling Direct materials $800.00 Direct labor cost $70.00 Manufacturing overhead applied $765.00 Total cost of Job 407 $1,635.00 Assembly $370.00 $280.00 $200.00 $850.00 Total $1,170.00+ $350.00 $965.00 $2,485.00 Step 5: Calculate the selling price for Job 407 Total cost of Job 407 Markup Selling price of Job 407 2,485.00 1,863.75 4,348.75