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 Variable manufacturing overhead per direct labor-hour Cost summary for Job 407 Machine-hours Direct labor-hours Direct materials 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 Direct labor cost 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 $390,000 $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 $510,000 $800,000 , Step 2: Calculate the predetermined overhead rate in each department Milling Assembly Total manufacturing overhead Total machine-hours or direct labor-hours $510,000 60,000 $800,000 80,000 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Milling 9 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 Machine-hours or direct labor-hours for the job Manufacturing overhead applied 90 $765.00 Assembly $10.00 20 $200.00 2 3 Step 4: Calculate the total job cost for Job 407 5 Direct materials 6 Direct labor cost 7 Manufacturing overhead applied 8 Total cost of Job 407 0 Step 5: Calculate the selling price for Job 407 1 Total cost of Job 407 2 Markup 3 Selling price of Job 407 345 6 Milling Assembly Total $800.00 $370.00 $70.00 $280.00 $765.00 $200.00 $1,170.00 $350.00 $965.00 $2,485.00 2,485.00 0.75 4,348.75