Chapter 2 Applying Excel (A)i Help Save & Exit Saved Check 2 Required information Exhibit 2-5 This Excel worksheet relates to the Dickson Company example that is summarized 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 C A B eBook 1 Chapter 2: Applying Excel Print 2 References Department 3 Cost summary for Job 408 Milling Assembly 5 Machine-hours 90 2 6 Direct labor-hours 20 Direct materials cost S 7 540 380 8 S 320 Direct labor cost 90 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.) 1C Selling price for Job 408 points eBook Print References 3. Without changing the data for the job from requirement 2 above, what is the sellingg 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.) 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 Requirement 2. What is the selling price for Job 408 if the total number of direct labor-hours decreases from 80,000 direct labor-hours to 40,000 direct labor-hours? (Round your final answer to the Assembly Department decimal places.) as it was 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 = $8.50 per machine-hour $800,000 80,000 direct labor-hours = $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 = $8.50 per MH x 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 Total Milling $800 70 Direct materials $1,170 350 Direct labor Manufacturing overhead applied $765 965 Total cost of Job 407 $2,485 Step 5: Calculate the selling price for Job 407. Total cost of Job 407. $2,485.00 1,863.75 Markup ($2,485 x 75%) $4,348.75 Selling price of Job 407
