Chapter 2: Applying Excel: Exercise (Part 2 of 2)

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:

Chapter 2: Applying Excel
Cost summary for Job 408	Department
	Milling	Assembly
Machine-hours	50	3
Direct labor-hours	8	20
Direct materials cost	$610	$300
Direct labor cost	$128	$320

Data
Markup on job cost	75%
	Department
	Milling	Assembly
Machine-hours	60,000	3,000
Direct labor-hours	8,000	50,000
Total fixed manufacturing overhead cost	$390,000	$500,000
Variable manufacturing overhead per machine-hour	$2.00
Variable manufacturing overhead per direct labor-hour		$3.75
Cost summary for Job 407	Department
	Milling	Assembly
Machine-hours	50	3
Direct labor-hours	8	20
Direct materials	$610	$300
Direct labor cost	$128	$320
Enter a formula into each of the cells marked with a ? below

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.)

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.)

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.)