Chapter 2 Applying Excel (A)i Saved Help Sa 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 C A B eBook Chapter 2: Applying Excel Print References 3 Cost summary for Job 408 Department Milling 4. Assembly Machine-hours 5 90 2 Direct labor-hours 6 5 20 S Direct materials cost 540 380 8 Direct labor cost 90 320 Chapter 2 Applying Excel (A) i Save & Saved Help Ch 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 Job 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 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 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.) 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 $800,000 80,000 direct labor-hours $510,000 60,000 machine-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 = $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. Milling $800 70 Assembly $370 Total Direct materials $1,170 Direct labor .. . . . $280 350 $765 $200 Manufacturing overhead applied 965 Total cost of Job 407 $2,485 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%) Selling price of Job 407 $4,348.75
