Cost Analysis of Job-Order Sheets Completing this activity will help you learn to: 1. build calculations to find cumulative costs and unit costs for a manufacturing job. 2. understand and utilize a manufacturing overhead rate. 3. understand what variable the direct labor, direct materials and manufacturing overhead costs depend on (hours, units, etc.). 4. reflect and utilize the helpful information you created in the job-order sheet. Case scenario: You are working at a manufacturing plant. You do not have the specific identification of the good sold. You are given the building blocks of cost (labor, materials, etc.) for Job \#26, which your plant completed. Your company accumulates cost per job on a Job-Order Sheet. Required: Download spreadsheet JobOrderCaseData-0f753d.xisx 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: o help you get started, the file already has a job order costs sheet populated with information. To complete task, complete the following steps: 1. Naming Cells: Individual cells, cell ranges, and tables can be named within Excel for formula ease. For example, the Total Material Subtotal (cell E15) can be named "TotalMaterialSubtotal." Going forward, cells can be referenced using words instead of the Excel coordinates. Label the completed units (cell G5), "Units." 2. Manufacturing Overhead: Review the manufacturing overhead rate in cell K9 of the job-order spreadsheet and observe how the manufacturing overhead is allocated for Job \#26. (Hint: "DLH" stands for Direct Labor Hours). a. Calculate the total hours for Job \#26 in cell J9. Remember, your goal is to create a reusable spreadsheet. Total labor hours should NOT be hardcoded (or typed in), but a formula should te used to accommodate 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 L. for Job \# 26. Is the manufacturing overhead amount you found for the JOB or for EACH UNIT? The manufacturing overhead amount is found for The manufacturing overhead amount is found for each unit 3. Cost Summary a. Calculate total direct materials for Job \#26 in cell G18. 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 G19. 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 G20. Do not hard-code. 9 d. Calculate the total costs for Job \#26 in cell G21. e. Calculate the unit product cost for Job \#26 in cell G22. 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 Reflect on your calculation process to further understand cost concepts. a. How does manufacturing overhead differ from direct materials and direct labor? the cost, and a rate. This differs from direct material and labor because those costs traceable outright to producing a unit. 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? Manufacturing overhead depends on a variety of variables including units, hours, jobs, etc. 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 manufacturing overhead. It is about % of the job's cost. Cost Analysis of Job-Order Sheets Completing this activity will help you learn to: 1. build calculations to find cumulative costs and unit costs for a manufacturing job. 2. understand and utilize a manufacturing overhead rate. 3. understand what variable the direct labor, direct materials and manufacturing overhead costs depend on (hours, units, etc.). 4. reflect and utilize the helpful information you created in the job-order sheet. Case scenario: You are working at a manufacturing plant. You do not have the specific identification of the good sold. You are given the building blocks of cost (labor, materials, etc.) for Job \#26, which your plant completed. Your company accumulates cost per job on a Job-Order Sheet. Required: Download spreadsheet JobOrderCaseData-0f753d.xisx 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: o help you get started, the file already has a job order costs sheet populated with information. To complete task, complete the following steps: 1. Naming Cells: Individual cells, cell ranges, and tables can be named within Excel for formula ease. For example, the Total Material Subtotal (cell E15) can be named "TotalMaterialSubtotal." Going forward, cells can be referenced using words instead of the Excel coordinates. Label the completed units (cell G5), "Units." 2. Manufacturing Overhead: Review the manufacturing overhead rate in cell K9 of the job-order spreadsheet and observe how the manufacturing overhead is allocated for Job \#26. (Hint: "DLH" stands for Direct Labor Hours). a. Calculate the total hours for Job \#26 in cell J9. Remember, your goal is to create a reusable spreadsheet. Total labor hours should NOT be hardcoded (or typed in), but a formula should te used to accommodate 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 L. for Job \# 26. Is the manufacturing overhead amount you found for the JOB or for EACH UNIT? The manufacturing overhead amount is found for The manufacturing overhead amount is found for each unit 3. Cost Summary a. Calculate total direct materials for Job \#26 in cell G18. 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 G19. 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 G20. Do not hard-code. 9 d. Calculate the total costs for Job \#26 in cell G21. e. Calculate the unit product cost for Job \#26 in cell G22. 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 Reflect on your calculation process to further understand cost concepts. a. How does manufacturing overhead differ from direct materials and direct labor? the cost, and a rate. This differs from direct material and labor because those costs traceable outright to producing a unit. 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? Manufacturing overhead depends on a variety of variables including units, hours, jobs, etc. 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 manufacturing overhead. It is about % of the job's cost