Chapter 2: Applying Excel Data Markup on job cost. Machine-hours Direct labor-hours Total fixed manufacturing overhead cost. Variable manufacturing overhead per machine-hour 2 Variable manufacturing overhead per direct labor-hour 3 4 Cost summary for Job 407 5 6 Machine-hours 7 Direct labor-hours 8 Direct materials 9 Direct labor cost 75% Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Department Milling Assembly 90 4 5 20 $800 $370 $70 $280 20 21 Enter a formula into each of the cells marked with a ? below 22 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 Milling Assembly 25 Total fixed manufacturing overhead cost ? ? 26 Variable manufacturing overhead per machine-hour or direct labor-hour ? ? 27 Total machine-hours or direct labor-hours ? ? 28 Total variable manufacturing overhead ? ? ? ? 29 Total manufacturing overhead 30 31 Step 2: Calculate the predetermined overhead rate in each department 32 33 Total manufacturing overhead Milling Assembly 2 ? 34 Total machine-hours or direct labor-hours ? ? 35 Predetermined overhead rate per machine-hour or direct labor-hour 2 2 36 37 Step 3: Calculate the amount of overhead applied from both departments to Job 407 38 Milling Assembly 39 Predetermined overhead rate per machine-hour or direct labor-hour 7 ? ? ? 2 ? 40 Machine-hours or direct labor-hours for the job 41 Manufacturing overhead applied 42 43 Step 4: Calculate the total job cost for Job 407 44 45 Direct materials 46 Direct labor cost 47 Manufacturing overhead applied 48 Total cost of Job 407 49 50 Step 5: Calculate the selling price for Job 407 51 Total cost of Job 407 52 Markup 53 Selling price of Job 407. 54 55 56 57 Milling Assembly Total 2 2 ? 2 7 ? 2 ? 2 ? 7 2 ? 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) = $390,000+ ($2.00 per MH 60,000 MHs) = $390,000+ $120,000 = $510,000 Assembly Department Overhead Cost (Y) =$500,000+ ($3.75 per DLH 80,000 DLHS) =$500,000+ $300,000 = $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate: $510,000 60,000 machine-hours = $8.50 per machine-hour Step 3: Calculate the amount of overhead applied Milling Department: Overhead Applied to Job 407 =$8.50 per MH 90 MHS = $765 Step 4: Calculate the total job cost for Job 407 Direct materials Direct labor Manufacturing overhead applied Total cost of Job 407 Step 5: Calculate the selling price for Job 407 = Assembly Department Overhead Rate: $800,000 80,000 direct labor-hours $10.00 per direct labor-hour from both departments to Job 407. Assembly Department Overhead Applied to Job 407 $10.00 per DLH-20 DLHS = $200 Milling Assembly Total $800 $370 $ 1,170 $70 $280 350 $765 $200 965 $2,485 Total cost of Job 407 $2,485.00 Markup ($2,485 75%) 1,863.75 Selling price of Job 407 $4,348.75 2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of t other data the same as in the original 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 4 Milling Assembly 5 Machine-hours 60 4 6 Direct labor-hours 8 40 7 Direct materials cost $ 780 $ 420 es 8 Direct labor cost $ 128 $ 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.) 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 4,000 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