Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 A Chapter 2: Applying Excel N 3 Cost summary for Job 408 4 4 5 Department Milling Assembly 50 4 6 Machine-hours Direct labor-hours Direct materials cost 5 40 7 $ 860 $ 250 00 8 Direct labor cost $ 95 $ 640 + 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 x 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 x 75%) 1,863.75 Selling price of Job 407 $4,348.75 X 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 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 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.) Selling price for Job 408 $ 4,665.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jill Collis

1st Edition

1137335882, 978-1137335883

More Books

Students also viewed these Accounting questions