Required information This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5 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: B 1 Chapter 2: Applying Excel 2 3 Cost summary for Job 408 4 Department Milling Assembly 90 5 4 6 7 40 Machine-hours Direct labor-hours Direct materials cost Direct labor cost 7 860 $ 420 $ $ 8 112 s 680 In your worksheet, enter this new data in the cells for Job 407. What is the new selling price for Job 408? (Round your final answer to 2 decimal places.) Selling price for Job 408 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? (Round your final answer to 2 decimal places.) Selling price for Job 408 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? (Round your final answer to 2 decimal places.) Selling price for Job 408 EXHIBIT 2-5 Dickson Company. An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department. Miling Department Overhead Cost (1) Assembly Department Overhead Cost (: = $390.000 + ($2.00 per MH X 60,000 MHS) = $500,000 + ($3.75 per DH X 80,000 DLHS) = $390,000+ $120,000 = $500,000 + $300,000 = $510,000 = $800,000 Step 2: Calculate the predetermined overhead rate in each department Milling Department Overhead Rate: Assembly Department Overhead Rate: $510,000 $800,000 60.000 machine-hours 80,000 direct labor hours = $8.50 per machine-hour = $10.00 per direct labor. hour Step 3: Calculate the amount of overhead applied from both departments to Job 407. Miling Department: Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 - $8.50 per MH x 90 MHS = $10.00 per DLH X 20 DLHS $765 $200 Step 4: Calculate the total job cost for Job 407 Miling Assembly Total Direct materials $800 $370 $1.170 Direct labor. $ 70 $280 350 Manufacturing overhead applied $765 $200 965 Total cost of Job 407 $2485 Step 5: Calculate the selling price for Job 407. Total cost of Job 407 $2.485.00 Markup ($2,485 x 75%) 1.863.75 Selling price of Job 407 $4.348.75 D E Miling 4 A B Lectours 0,00 Ou,ww LO Total fixed manufacturing overhead cost $300,000 $500,000 11 Variable manufacturing overhead per machine-hour $2.00 12 Variable manufacturing overhead per direct labor-hour $3.75 13 14 Cost summary for Job 407 Department 15 Assembly 16 Machine-hours 90 17 Direct labor-hours 5 20 18 Direct materials $800 $370 19 Direct labor cost $70 $280 20 21 Enter a formula into each of the cells marked with a ? below 22 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 Milling Assembly 5 Total fixed manufacturing overhead cost $300,000 $500,000 26 Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.75 27 Total machine-hours or direct labor-hours 60,000 60,000 28 Total variable manufacturing overhead $120,000 $300,000 29 Total manufacturing overhead $510.000 $800,000 30 31 Step 2: Calculate the predetermined overhead rate in each department 32 Miling Assembly 3 Total manufacturing overhead $510,000 $800,000 34 Total machine-hours or direct labor-hours 60,000 80,000 35 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 36 7 Step 3: Calculate the amount of overhead applied from both departments to Job 407 38 Miling Assembly 89 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $10.00 10 Machine-hours or direct labor-hours for the job 90 20 11 Manufacturing overhead applied $765.00 $200.00 42 13 Step 4: Calculate the total job cost for Job 407 14 Miling Assembly 95 Direct materials $800.00 $270.00 16 Direct labor cost $70.00 $280.00 17 Manufacturing overhead applied $765.00 $200.00 18 Total cost of Job 407 19 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 Total $1,170.00 $350.00 $965.00 $2.485.00 2,485.00 1,863.75 4,348.75