Chapter 2 Applying Excel (A) i) Saved Help 2 Required information This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5 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: 10 points A B eBook Chapter 2: Applying Excel Print References 3 Department Cost summary for Job 408 Assembly 4 Milling Machine-hours 5 80 2 Direct labor-hours 20 8 Direct materials cost S 200 760 Direct labor cost 136 360 8 EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Miling Department Overhead Cost (Y: Assembly Department Overhead Cost (Y): =$390,000+$120 0 MHx 60,000 MHs) =$510,000 DLH x 80,000 DLHS) 5500,000 = $500.000 + $300,000 390,000 2.00 $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: Assembly Department Overhedad Rate: $510,000 = 60 000 machine-hours $800.0 =80000 dlrect labor-hours $10.00 per direct labor-hour = $8.50 per machine-hour Step 3: Calculate the amount overhead applied from both departments to Job 407. MiNing Department: Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 =$8.50 per MHx 90 MHs = $ 765 $10.00 per DLH x 20 DLHS = $200 Step 4: Calculate the total job cost for Job 407. Assembly $370 $280 $200 Milling $800 Total Direct materials $1,170 350 Direct labor 70 $765 Manufacturing overhead applied 965 $2,485 Total cost of Job 407 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 $4,348.75 Selling price of Job 407 Part 2 of 2 In your worksheet, enter this new data in the cells for Job 407. 1C What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) points Selling price for Job 408 eBook Print 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.) References Selling price for Job 408 the Assembly Department to 3,000 machine-hours. And keep the job data the same 4. Restore the total number of machine-hours 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
