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 Chapter 2: Applying Excel 1 2 Cost summary for Job 408 3 4 5 6 Machine-hours Direct labor hours Direct materials cost Direct labor cost Department Milling Assembly 90 4 7 20 640 $ 330 126 S 380 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 400 1 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 lobor-hours to 40,000 direct labor-hours? (Round your final answer to 2 decimal places.) Setting profor 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 ( = $390,000 + ($2.00 per MH 60,000 MHs) = $500,000 + ($3.75 per DLH80,000 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 DLH 20 DLHS = $765 = $200 Step 4: Calculate the total job cost for Job 407 Milling Assembly Total Direct materials $800 $370 $ 1,170 Direct labor $70 $280 350 Manufacturing overhead applied $ 765 $200 965 Total cost of Job 407 $2,485 Step 5: Calculate the selling price for Job 407 Total cost of Job 407 $2.485.00 Markup ($2,485 * 75%) 1,863.75 Selling price of Job 407 $4,34875