Chapter 2: Applying Excel . Data Markup on job cost 75% Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Cost summary for Job 407 Machine-hours Direct labor-hours Direct materials Direct labor cost Department Milling Assembly 90 4 5 20 $800 $370 $70 $280 Enter a formula into each of the cells marked with a ? below Step 1: Calculate the estimated total manufacturing overhead cost for each department Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour or direct labor-hour Total machine-hours or direct labor-hours Total variable manufacturing overhead Total manufacturing overhead Milling $390,000 $2.00 60,000 $120.000 $510,000 Assembly $500,000 $3.75 80,000 $300,000 $800,000 Step 2: Calculate the predetermined overhead rate in each department Milling Total manufacturing overhead Total machine-hours or direct labor-hours Predetermined overhead rate per machine-hour or direct labor-hour $510,000 60,000 $8.50 Assembly $800,000 80,000 $10.00 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Predetermined overhead rate per machine-hour or direct labor-hour Machine-hours or direct labor-hours for the job Manufacturing overhead applied Milling $8.50 90 $765.00 Assembly $10.00 20 $200.00 Step 4: Calculate the total job cost for Job 407 Direct materials Direct labor cost Manufacturing overhead applied Total cost of Job 407 Milling $800.00 $70.00 $765.00 $1,635.00 Assembly $370.00 $280.00 $200.00 $850.00 Total $1,170.00 $350.00 $965.00 $2.485.00 Step 5: Calculate the selling price for Job 407 Total cost of Job 407 Markup Selling price of Job 407 1,864.00 4,349.00 2. Change the total fixed manufacturing overhead cost for the Milling Department Data area back to $390,000, keeping all of the other data the same as in the origin example. Consider a new job, Job 408, with the following characteristics: A B C 1 Chapter 2: Applying Excel 2 3 Cost summary for Job 408 Department Milling Assembly 4 5 4 Machine-hours 70 6 Direct labor-hours 5 40 7 Direct materials cost $ 600 $ 270 8 $ Direct labor cost 800 100 $ In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) 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 6,000 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
