Chapter 2 Applying Excel (A) i Saved Help Save & Exit Check 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 1C polnts new job, Job 408, with the following characteristics: C A B eBook Chapter 2: Applying Excel Print References 3 Cost summary for Job 408 Department Assembly 4 Milling Machine-hours 5 80 Direct labor-hours 6 8 20 Direct materials cost 7 760 200 Direct labor cost 136 $ 8 360 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 Chapter 2 Applying Excel (A) Saved Help Save & Exit Submit Check my work 2 Required information In your worksheet, enter this new data in the cells for Job 407 Part 2 of 2 What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 10 Selling price for Jab 408 points eBook Print References 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number f machine- decimal placoe blDepartment increases from 3,000 machine-hours to 4,000 machine-hours? (Round your final answer to 2 es.) 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 Department decreases from 80,000 direct labor-hours to 50,000 direct labor-hourss? (Round your final answer to 2 decimal places.) Selling price for Jab 408
