A B 1 Chapter 2: Applying Excel 2 3 Data 4 Markup on job cost 5 6 7 8 Machine-hours 10 Total fixed manufacturing overhead cost 9 Direct labor-hours 11 Variable manufacturing overhead per machine-hour 12 Variable manufacturing overhead per direct labor-hour 13 14 Cost summary for Job 407 15 16 Machine-hours 17 Direct labor-hours 18 Direct materials 75% n Department Milling 60,000 Assembly 8,000 $390,000 $2.00 3,000 80,000 $500,000 $3.75 Department Milling Assembly 90 4 5 20 $800 $370 $70 $280 19 Direct labor cost 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 30 $510,000 $800,000 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 39 Predetermined overhead rate per machine-hour or direct labor-hour 40 Machine-hours or direct labor-hours for the job 41 Manufacturing overhead applied $8.50 90 $765.00 Assembly $10.00 20 $200.00 42 43 Step 4: Calculate the total job cost for Job 407 44 45 Direct materials 46 Direct labor cost 47 Manufacturing overhead applied 48 Total cost of Job 407 49 50 Step 5: Calculate the selling price for Job 407 51 Total cost of Job 407 52 Markup 53 Selling price of Job 407 54 Milling Assembly $800.00 $370.00 Total $1,170.00 $70.00 $280.00 $350.00 $765.00 $200.00 $965.00 $2,485.00 2,485.00 1,883.75 4,348.75 D