Chapter 2: Applying Excel Data Markup on job cost Machine-hours Direct labor-hours Total fixed manufacturing overhead cost 1 Variable manufacturing overhead per machine-hour 2 Variable manufacturing overhead per direct labor-hour 3 4 Cost summary for Job 407 5 16 Machine-hours 17 Direct labor-hours 18 Direct materials 19 Direct labor cost 20 21 Enter a formula into each of the cells marked with a ? below 22 75% Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Department Milling Assembly 90 4 5 20 $800 $370 $70 $280 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 25 Total fixed manufacturing overhead cost 26 Variable manufacturing overhead per machine-hour or direct labor-hour 27 Total machine-hours or direct labor-hours 28 Total variable manufacturing overhead 29 Total manufacturing overhead 30 31 Step 2: Calculate the predetermined overhead rate in each department 32 33 Total manufacturing overhead Milling Assembly $390,000 $2.00 60,000 $500,000 $3.75 80,000 $120,000 $300,000 $510,000 $800,000 Milling Assembly $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 37 Step 3: Calculate the amount of overhead applied from both departments to Job 407 38 Milling 39 Predetermined overhead rate per machine-hour or direct labor-hour $8.50 40 Machine-hours or direct labor-hours for the job 90 $765.00 Assembly $10.00 4 $40.00 41 Manufacturing overhead applied 42 43 Step 4: Calculate the total job cost for Job 407 44 45 Direct materials 46 Direct labor cost 47 Manufacturing overhead applied 48 Total cost of Job 407 49 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 Milling Assembly $800.00 $370.00 $70.00 $280.00 Total $1,170.00 $350.00 $765.00 $40.00 $805.00 $2,325.00 2,325.00 1,743.75 4,068.75 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: A 1 Chapter 2: Applying Excel 2 3 4 5 Cost summary for Job 408 Machine-hours 6 Direct labor-hours B C Department Miling Assembly 60 4 8 40 7 Direct materials cost $ 780 $ 420 8 Direct labor cost $ 128 $ 640 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 4,000 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