Step $1$: Calculate the estimated total manufacturing overhead cost for each departmentChange the total fixed manufacturing overhead cost for the Milling Department in Data area back to $$390,000,$ keeplng 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 $407.$

What is the new selling price for Job $408?$

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 $4,000$ machine$-$hours?

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?

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 $407$