Cost Analysis of Job$-$Order Sheets

Completing this activity will help you learn to:

build calculations to find cumulative costs and unit costs for a manufacturing job.

understand and utilize a manufacturing overhead rate.

understand what variable the direct labor, direct materials and manufacturing overhead costs depend on $($hours$,$ units, etc.$).$

reflect and utilize the helpful information you created in the job$-$order sheet. completed. Your company accumulates cost per job on a Job$-$Order Sheet.

Required:

Download spreadsheet JobOrderCaseData$-2357$ee$,$xlsx

Build a spreadsheet to calculate a manufacturing job's total cost and unit product cost. This lab uses "Job #$26"$ information.

HINT: STEP$-$BY$-$STEP WALKTHROUGH

To help you get started, the file already has a job order costs sheet populated with information. To complete the task, complete the following steps: referenced using words instead of the Excel coordinates. Label the completed units $($cell G$5),$ "Units." Hours$).$

$1$ more Check My Work uses remaining.

variations in total hours.

hours

b$.$ Now you have the building blocks to calculate the amount of manufacturing overhead. Calculate the manufacturing overhead in cell $L9$ for Job #$26.$

Is the manufacturing overhead amount you found for the JOB or for EACH UNIT?

The manufacturing overhead amount is found for

$3.$ Cost Summary

a$.$ Calculate total direct materials for Job #$26$ in cell G$18.$ Hint: Is the direct material information given the total for the job or for each unit?

b$.$ Calculate direct labor for Job #$26$ in cell G$19.$ Hint: Is the direct labor information given the total for the job or for each unit?

c$.$ Calculate manufacturing overhead for Job #$26$ in cell G$20.$ Do not hard$-$code.

d$.$ Calculate the total costs for Job #$26$ in cell G$21.$

e$.$ Calculate the unit product cost for Job #$26$ in cell G$22.$

e$.$ Calculate the unit product cost for Job #$26$ in cell G$22.$

$4.$ Reflect on your calculation process to further understand cost concepts.

a$.$ How does manufacturing overhead differ from direct materials and direct labor?

Manufacturing overhead is cost$,$ not costs, associated with manufacturing. It requires analyzation of total the cost, and a rate. This differs from direct material and labor because those costs traceable outright to producing a unit. costs, a rational method of allocating

b$.$ What variable$($s$)$ does direct labor depend on$?$

What variable$($s$)$ do direct materials depend on$?$

What variable$($s$)$ does manufacturing overhead depend on$?$

c$.$ What information can you gleam from the job$-$cost spreadsheet? What is the most expensive part of the job? least expensive? is the most expensive part of manufacturing this job. It accounts for about $\%$ of the job's cost.

The least expensive part of this manufacturing job is It is about $\%$ of the job's cost.

$5.$ Explain how job cost sheets are used to evaluate and control costs.

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