A E 1 Chapter 2: Applying Excel 2 3 Data 4 Markup on job cost 75% 5 6 Department 7 Milling Assembly 8 Machine-hours 60,000 3,000 9 Direct labor-hours 8,000 80,000 10 Total fixed 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 13 14 Cost summary for Job 407 Department 15 Milling 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 ? 26 Variable manufacturing overhead per machine-hour or direct labor-hour ? 27 Total machine-hours or direct labor-hours 28 Total variable manufacturing overhead 29 Total manufacturing overhead ? 30 31 Step 2: Calculate the predetermined overhead rate in each department 32 Milling Assembly 33 Total manufacturing overhead ? ? 34 Total machine-hours or direct labor-hours ? ? 35 Predetermined overhead rate per machine-hour or direct labor-hour ? ? 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 ? ? 40 Machine-hours or direct labor-hours for the job ? ? 41 Manufacturing overhead applied ? ? ? ? ? ? c.ca 2 Step 4: Calculate the total job cost for Job 407 1 Milling Total 5 Direct materials 5 Direct labor cost 7 Manufacturing overhead applied 3 Total cost of Job 407 ? ? ? Assembly 2 ? ? ? ? ? ? ? ? ? Step 5: Calculate the selling price for Job 407 Total cost of Job 407 2 Markup 3 Selling price of Job 407 1 5 5 7 B 2 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 2 3 Cost summary for Job 408 4 Department Milling Assembly 60 5 Machine-hours 2 6 8 20 7 Direct labor-hours Direct materials cost Direct labor cost $ 680 $ 310 340 8 $ 128 $ 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 $ 2,551.00 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 4,000 machine-hours? (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 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
