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 C A 1 Chapter 2: Applying Excel 2 3 Cost summary for Job 408 4 5 Machine hours 6 Direct labor hours 2 Direct materials cost 8 Direct labor cost Department Miling Assembly 70 2 8 20 680 S 400 1365 360 $ $ Prey 1 of 1 H Next 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. 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 4,000 machine hours? (Round your final answer to 2 decimal places.) Selling price for Job 400 Selling po 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 of the total number of direct labor-hours in the Assembly Department decreases from 80,000 direct labor hours to 50,000 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 60,000 MHs) = $500,000 + ($3.75 per DLH ~ 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 90 MHs = $10.00 per DLHX 20 DLHS $765 $200 Step 4 Calculate the totaljob.cost for Job 407 Milling Assembly Total Direct materials $800 $370 $ 1170 Direct labor $280 350 Manufacturing overhead appled $765 $200 965 Total cost of Job 407 $2,485 $70 Step 5. Calculate the selling price for Job 407. Total cost of Job 407 Markup ($2 48575% Selling price of Bob 407 $2.485 00 1,86375 $434875