These questions go together, they just have different numbers.
the text. The Chapter 2 Form worksheet is o be used to create your own worksheet version of the example Enter formulas in the cells that contain question marks. enter the formula -B10 example, ell After entering formulas all of the cells that contained question marks, verify that the amounts match the example in the text. Check your worksheet by changing the total fixed manufacturing overhead cost for the Milling Department in the Data area operating properly, the total cost of Job 407 should now be $2,350. If you do not get this answer, find the errors in your worksheet and correct them. $300,000, keeping all other data the same as the original example. If your worksheet is You should proceed to the requirements below only after completing your worksheet. EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department Milling Department Overhead Cost (Y): Assembly Department Overhead Cost (Y): = $500,000 ($3.75 per DLH x 80,000 DLHS) = $500,000 + $300,000 = $800,000 = $390,000 + ($2.00 per MH x 60,000 MHs) = $390,000 + $120,000 = $510,000 Step 2: Calculate the predetermined overhead rate in each department Milling Department Overhead Rate: Assembly Department Overhead Rate $510,000 $800,000 80,000 direct labor-hours 60,000 machine-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. Milling Department: Overhead Applied to Job 407 Assembly Department: Overhead Applied to Job 407 = $8.50 per MH x 90 MHs = $765 =$10.00 per DLH x 20 DLHS = $200 Step 4: Calculate the total job cost for Job 407 Milling Assembly $370 $280 Total Direct materials $800 $1,170 $ 70 Direct labor 350 $200 Manufacturing overhead applied $765 965 $2,485 Total cost of Job 407 Step 5: Calculate the selling price for Job 407. $2,485.00 1,863.75 Total cost of Job 407 Markup ($2,485 x 75%) Selling price of Job 407 $4.348.75 ? ? 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 ? 7 ? ? ? Step 4: Calculate the total job cost for Job 407 Milling Total Assembly ? Direct materia ls ? ? 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 ? 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: A B C 1 Chapter 2: Applying Excel 2 Department 3 Cost summary for Job 408 Assembly Milling 4 5 Machine-hours 6 Direct labor-hours 7 Direct materials cost 8 Direct labor cost 80 2 9 20 710 $ 144 $ S 390 380 In your worksheet, enter this new data in the cells for Job 407 decimal places.) What is the new selling price for Job 408? (Round your final answer to X Answer is complete but not Selling price for Job 408 3,130.00 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 5,000 machine-hours? (Round your final answer to 2 decimal places.) Answer is complete but not Selling price for Job 408 3,130.00 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.) Answer is complete but not Selling price for Job 408 3.280.00 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 C 1 Chapter 2: Applying Excel 2 Department Assembly Cost summary for Job 408 3 Milling 4 Machine-hours 70 2 6 Direct labor-hours 7 Direct materials cost 8 Direct labor cost 20 230 820 $ 171 $ $ 360 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.) Answer is complete but not Selling price for Job 408 3,130.00 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.) XAnswer is complete but not $ 3,130,00 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.) XAnswer is complete but not Selling price for Job 408 3.280.00
