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Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $ 3 9 0 , 0 0 0 ,
Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $ keeping all of the other data the same as in the original example. Consider a new job, Job with the following characteristics:
In your worksheet, enter this new data in the cells for Job
What is the new selling price for Job
Without changing the data for the job from requirement above, what is the selling price for Job if the total number of machinehours in the Assembly Department increases from machinehours to machinehours?
Restore the total number of machinehours in the Assembly Department to machinehours. And keep the job data the same as it was in Requirement What is the selling price for Job if the total number of direct laborhours in the Assembly Department decreases from direct laborhours to direct laborhours?
EXHIBIT Dickson Company: An Example Using Multiple Predetermined Overhead Rates
Step : Calculate the estimated total manufacturing overhead cost for each department.
Milling Department Overhead Cost Y $$ per MH times MHs
$ $
$
Assembly Department Overhead Cost Y $$ per DLH times DLHs
$ $
$
Step : Calculate the predetermined overhead rate in each department.
Milling Department Overhead Rate $ machinehours
$ per machinehour
Assembly Department Overhead Rate $ direct laborhours
$ per direct laborhour
Step : Calculate the amount of overhead applied from both departments to Job
Milling Department: Overhead Applied to Job
$ per MH times MHs
$
Assembly Department: Overhead Applied to Job
$ per DLH times DLHs
$
Step : Calculate the total job cost for Job
Milling Assembly Total
Direct materials $ $ $
Direct labor $ $
Manufacturing overhead applied $ $
Total cost of Job $
Step : Calculate the selling price for Job
Total cost of Job $
Markup $times
Selling price of Job $
What is the new selling price for Job
Without changing the data for the job from requirement above, what is the selling price for Job if the total number of machinehours in the Assembly Department increases from machinehours to machinehours?
Restore the total number of machinehours in the Assembly Department to machinehours. And keep the job data the same as it was in Requirement What is the selling price for Job if the total number of direct laborhours in the Assembly Department decreases from direct laborhours to direct laborhours?
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