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Markup on job cost 75% Department Milling Assembly Machine-hours 60,000 3,000 Direct labor-hours 8,000 80,000 Total fixed manufacturing overhead cost $390,000 $500,000 Variable manufacturing overhead
Markup on job cost | 75% |
Department | ||
Milling | Assembly | |
Machine-hours | 60,000 | 3,000 |
Direct labor-hours | 8,000 | 80,000 |
Total fixed manufacturing overhead cost | $390,000 | $500,000 |
Variable manufacturing overhead per machine-hour | $2.00 | |
Variable manufacturing overhead per direct labor-hour | $3.75 |
Cost summary for Job 407 | Department | |
Milling | Assembly | |
Machine-hours | 90 | 4 |
Direct labor-hours | 5 | 20 |
Direct materials | $800 | $370 |
Direct labor cost | $70 | $280 |
Step 1: Calculate the estimated total manufacturing overhead cost for each department | ||
Milling | Assembly | |
Total fixed manufacturing overhead cost | ? | ? |
Variable manufacturing overhead per machine-hour or direct labor-hour | ? | ? |
Total machine-hours or direct labor-hours | ? | ? |
Total variable manufacturing overhead | ? | ? |
Total manufacturing overhead | ? | ? |
Step 2: Calculate the predetermined overhead rate in each department | ||
Milling | Assembly | |
Total manufacturing overhead | ? | ? |
Total machine-hours or direct labor-hours | ? | ? |
Predetermined overhead rate per machine-hour or direct labor-hour | ? | ? |
Step 3: Calculate the amount of overhead applied from both departments to Job 407 | ||
Milling | Assembly | |
Predetermined overhead rate per machine-hour or direct labor-hour | ? | ? |
Machine-hours or direct labor-hours for the job | ? | ? |
Manufacturing overhead applied | ? | ? |
Step 4: Calculate the total job cost for Job 407 | |||
Milling | Assembly | Total | |
Direct materials | ? | ? | ? |
Direct labor cost | ? | ? | ? |
Manufacturing overhead applied | ? | ? | ? |
Total cost of Job 407 | ? |
Step 5: Calculate the selling price for Job 407 | |||
Total cost of Job 407 | ? | ||
Markup | ? | ||
Selling price of Job 407 | ? |
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