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:

Chapter 2: Applying Excel
Cost summary for Job 408	Department
	Milling	Assembly
Machine-hours	90	3
Direct labor-hours	6	40
Direct materials cost	$800	$420
Direct labor cost	$120	$680

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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)

	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
	Milling	Assembly
Total manufacturing overhead	$510,000	$800,000
Total machine-hours or direct labor-hours	60,000	80,000
Predetermined overhead rate per machine-hour or direct labor-hour	$8.50	$10.00
	Milling	Assembly
Predetermined overhead rate per machine-hour or direct labor-hour	$8.50	$10.00
Machine-hours or direct labor-hours for the job	90	4
Manufacturing overhead applied	$765.00	$40.00
	Milling	Assembly	Total
Direct materials	$800.00	$370.00	$1,170.00
Direct labor cost	$70.00	$280.00	$350.00
Manufacturing overhead applied	$765.00	$40.00	$805.00
Total cost of Job 407			$2,325.00
Total cost of Job 407			2,325.00
Markup			1,743.75
Selling price of Job 407				4,068.75