Data Markup on job cost Machine-hours Direct labor-hours Total foced 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 Direct labor cost Enter a formula into each of the cells marked with a ? below 75% Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Department Ming Assembly 90 4 5 20 $800 $370 $70 $280 Step 1: Calculate the estimated total manufacturing overhead cost for each department 5 Total foced manufacturing overhead cost Milling $390,000 Assembly $500,000 6 Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.50 7 Total machine-hours or direct labor-hours 60,000 80,000 Total variable manufacturing overhead $120,000 $300,000 9 Total manufacturing overhead $510,000 $800,000 O Step 2: Calculate the predetermined overhead rate in each department 2 Milling Assembly 3 Total manufacturing overhead $510,000 $800,000 14 Total machine-hours or direct labor-hours 60,000 80,000 15 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 16 17 Step 3: Calculate the amount of overhead applied from both departments to Job 407 38 Milling 19 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 10 Machine-hours or direct labor-hours for the job 41 Manufacturing overhead applied 90 $795.00 Assembly $10.00 20 $200.00 42 43 Step 4: Calculate the total job cost for Job 407 44 Milling 45 Direct materials Assembly Total $800.00 46 Direct labor cost $370.00 $70.00 $280.00 47 Manufacturing overhead applied 48 Total cost of Job 407 49 $1,170.00 $350.00 $795.00 $200.00 $965.00 $1,635.00 $850.00 $2,485.00 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 Ready Chapter 2 Form + 2,485.00 1,863.75 4,348 75