Question

E Merge & Center - $ ~ % 9 8 .00 Paste A34 BIV- E A E EE Total machine-hours or direct labor-hours x G H 1 Chapter 2: Applying Excel Data 4 Markup on job cost 75% Milling 8 Machine-hours 9 Direct labor hours 10 Total faced manufacturing overhead cost 11 Variable manufacturing overhead per machine-hour 12 Variable manufacturing overhead per direct labor hour Department Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Department Miling Assembly 14 Cost summary for Job 407 15 16 Machine-hours 17 Direct labor hours 18 Direct materials 19 Direct labor cost 90 $800 $70 5280 21 Enter a formula into each of the cele marked with a 7 below Assembly 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 Miling 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 31 Step 2: Calculate the predetermined overhead rate in each department Miling Assembly 33 Total manufacturing overhead 34 Total machine-hours or direct labor hours 35 Predetermined overhead rate per machine-hour or direct labor hour 37 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Miling 39 Predetermined overhead rate per machine-hour or direct labor hour 40 Machine-hours or direct labor-hours for the job 41 Manufacturing overhead applied Assembly

Answer 1

Step 1
	Milling	Assembly
Total Fixed Manufacturing Overhead	390000	500000
Variable Mfg. Overhead per MH or DLH	2.00	3.75
Total Machine or Direct Labour Hours	60000	80000
Total Variable Manufacturing Overhead	120000	300000
Total Manufacturing Overhead (Fixed+Variable)	510000	800000
Step 2
	Milling	Assembly
Total Manufacturing Overhead	510000	800000
Total Machine or Direct Labour Hours	60000	80000
Predetermined overhead rate per MH or DLH	8.50	10.00
Step 3
	Milling	Assembly
Predetermined overhead rate per MH or DLH	8.50	10.00
Machine or Direct Labour Hours for the Job	90	20
Manufacturing Overhead Applied	765	200
Step 4
	Milling	Assembly	Total
Direct Material	800	370	1170
Direct Labour Cost	70	280	350
Manufacturing Overhead Applied	765	200	965
Total Cost of Job 407			2485
Step 5
Total Cost of Job 407			2,485.00
Markup @ 75%			1,863.75
Selling Price of Job 407			4,348.75