Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 3-5 2. Change the total fixed manufacturing overhead cost

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed Required information This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 3-5 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: In your worksheet, enter this new data in the cells for Job 407 . In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? Note: 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? Note: 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 40,000 direct labor-hours? Note: Round your final answer to 2 decimal places. Milling Department Overhead Cost (Y)=$390,000+($2.00 per MH 60,000MHs) =$390,000+$120,000=$510,000 Assembly Department Overhead Cost (Y)=$500,000+($3.75 per DLH 80,000DI =$500,000+$300,000 =$800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department Overhead Rate =$510,000/60,000 machine-hours =$8.50 per machine-hour Assembly Department Overhead Rate =$800,000/80,000 direct labor-hours =$10.00 per direct labor-hour Step 3: Calculate the amount of overhead applied from both departments to Job 407. Milling Department: Overhead Applied to Job 407 =$8.50perMH90MHs=$765 Assembly Department: Overhead Applied to Job 407 =$10.00perDLH20DLHs=$200 Step 5: Calculate the selling price for Job 407

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hong Kong Auditing Economic Theory And Practice

Authors: Ferdinand A Gul

2nd Edition

9629371413, 978-9629371418

More Books

Students also viewed these Accounting questions

Question

Define net discretionary cash flow.

Answered: 1 week ago