Applying Excel: Excel Worksheet (Part 1 of 2)

Download the Applying Excel form and enter formulas all cells that contain question marks.

The Chapter 2 Form worksheet is to be used to create your own worksheet version of the example in the text.

Enter formulas in the cells that contain question marks. For example, in cell B25 enter the formula "=B10".

After entering formulas in all of the cells that contained question marks, verify that the amounts match the example in the text.

Check your worksheet by changing the total fixed manufacturing cost for the Milling Department in the Data area to $300,000, keeping all other data the same as in the original example. If your worksheet is operating properly, the total cost of Job 407 should now be $2,350. If you do not get this answer, find the errors in your worksheet and correct them.

You should proceed to the requirements below only after completing your worksheet.

Here is information for the Job 408

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 DepartmentOverhead 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 Markup ($2.485 x 75%) Selling price of Job 407 $2.485.00 1.863.75 $4,348 75 Chapter 2: Applying Excel: Exercise (Part 2 of 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 5 Machine-hours Direct labor hours Direct materials cost Direct labor cost Department Miling Assembly 60 4 8 20 7605 300 144 $ 6 7 $ $ B 320