Question: EXHIBIT 2 - 5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Change the total fixed manufacturing overhead cost for the Milling Department in

EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates 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:
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 6,000 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? Complete this question by entering your answers in the tabs below.
What is the new selling price for Job 408?
Note: Round your final answer to 2 decimal places.
Selling price for Job 408 Required 3
Required 4
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?
Note: Round your final answer to 2 decimal places.
Selling price for Job 408Complete this question by entering your answers in the tabs below.
Required 3
Required 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?
Note: Round your final answer to 2 decimal places.
Selling price for Job 408
Step 1: Calculate the estimated total manufacturing overhead cost for each department.
Milling Department Overhead Cost (Y)=$390,000+($2.00 per MH60,000MHs)
=$390,000+$120,000
=$510,000
Assembly Department Overhead Cost per DLH 80,000 DLHs
*Need answers for "Required 2-4"*
 EXHIBIT 2-5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!