Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chapter 2: Applying Excel Data Markup on job cost 75% Department Milling Assembly Machine-hours 60,000 3,000 Direct labor-hours 8,000 80,000 Total fixed manufacturing overhead cost

Chapter 2: Applying Excel
Data
Markup on job cost 75%
Department
Milling Assembly
Machine-hours 60,000 3,000
Direct labor-hours 8,000 80,000
Total fixed manufacturing overhead cost $300,000 $500,000
Variable manufacturing overhead per machine-hour $2.00
Variable manufacturing overhead per direct labor-hour $3.75
Cost summary for Job 407 Department
Milling Assembly
Machine-hours 90 4
Direct labor-hours 5 20
Direct materials $800 $370
Direct labor cost $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
Milling Assembly
Total fixed manufacturing overhead cost $300,000 $500,000
Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.75
Total machine-hours or direct labor-hours 60,000 80,000
Total variable manufacturing overhead $120,000 $300,000
Total manufacturing overhead $420,000 $800,000
Step 2: Calculate the predetermined overhead rate in each department
Milling Assembly
Total manufacturing overhead $420,000 $800,000
Total machine-hours or direct labor-hours 60,000 80,000
Predetermined overhead rate per machine-hour or direct labor-hour $7.00 $10.00
Step 3: Calculate the amount of overhead applied from both departments to Job 407
Milling Assembly
Predetermined overhead rate per machine-hour or direct labor-hour $7.00 $10.00
Machine-hours or direct labor-hours for the job 90 20
Manufacturing overhead applied $630.00 $200.00
Step 4: Calculate the total job cost for Job 407
Milling Assembly Total
Direct materials $800.00 $370.00 $1,170.00
Direct labor cost $70.00 $280.00 $350.00
Manufacturing overhead applied $630.00 $200.00 $830.00
Total cost of Job 407 $2,350.00
Step 5: Calculate the selling price for Job 407
Total cost of Job 407 2,350.00
Markup 1,762.50
Selling price of Job 407 4,112.50

Chapter 2: Applying Excel: Exercise (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:

Milling Assembly

Machine hours- 90 2

direct labor hours 6 40

direct material cost 640 460

direct labor cost 108 640

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.)

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.)

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And GRC Automation In SAP

Authors: Maxim Chuprunov

1st Edition

3642353010, 9783642353017

More Books

Students also viewed these Accounting questions