Chapter 2 Applying Excel (A) Save & Exit Help Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to 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 $390,000, keeping all of the other data the same as in the original example. Consider 1C points new job, Job 408, with the following characteristics: A B C 1 Chapter 2: Applying Excel Cost summary for Job 408 Department Milling Assembly Machine-hours 2 90 Direct labor-hours 5 20 Direct materials cost 540$ 380 Direct labor cost 90 S 8 320 Part 2 of 2 In your worksheet, enter this new data in the cells for Job 407. 10 What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) points Answer is complete but not entirely correct $ 2,295.00 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 5,000 machine-hours? (Round your final answer to 2 decimal places.) Answer is complete and correct. $ 4,016.25 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 40,000 direct labor-hours? (Round your final answer to 2 decimal places.) X Answer is complete but not entirely correct. $4,016.25 X Selling price for Job 408 EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates 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 x 60,000 MHs) = $390,000 + $120,000 = $510,000 = $500,000 +($3.75 per DLH x 80,000 DLHS) = $500,000 $300,000 = $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate Assembly Department Overhead Rate $510,000 60,000 machine-hours $800,000 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 Department: Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 = $10.00 per DLH x 20 DLHS = $200 = $8.50 per MH x 90 MHs = $765 Step 4: Calculate the total job cost for Job 407. Milling $800 Assembly $370 Total Direct materials Direct labor $1,170 $70 $280 $200 350 Manufacturing overhead applied $765 965 $2,485 Total cost of Job 407 Step 5: Calculate the selling price for Job 407. $2,485.00 1,863.75 Total cost of Job 407 Markup ($2,485 x 75%) $4.348.75 Selling price of Job 407
