Question

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 с 1 2 Chapter 2: Applying Excel 3 Cost summary for Job 408 4 5 6 Machine-hours Direct labor hours Direct materials cost Direct labor cost Department Milling Assembly 90 2 9 20 760 $ 330 162 S 320 7 $ 8 $ 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 < Prey 1 of 1 Next

Answer 1

2. Selling price of Job 408 = $4439.75

Markup on job cost	75%
	Department
	Milling	Assembly
Machine hours	60000	3000
Direct Labor hours	8000	80000
Total Fixed Manufacturing Overhead	$              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 408	Department
	Milling	Assembly
Machine Hours	90	2
Direct Labor hours	9	20
Direct Material	$                     760	$                    330
Direct Labor Cost	$                     162	$                    320
	Milling	Assembly
Total Fixed Manufacturing Overhead	$              390,000	$             500,000
Variable manufacturing overhead per machine hour	$                    2.00	$                   3.75
Total Machine hours or direct labor hours	60000	80000
Total Variable Manufacturing Overhead	$              120,000	$             300,000
Total Manufacturing Overhead	$             510,000	$            800,000
	Milling	Assembly
Total Manufacturing Overhead	$              510,000	$             800,000
Total Machine hours or direct labor hours	60000	80000
Predetermined Overhead rate	$                    8.50	$                 10.00
	Milling	Assembly
Predetermined Overhead rate	$                    8.50	$                 10.00
Machine hours or direct labor hours for the job	90	20
Manufacturing overhead applied	$                     765	$                    200
	Milling	Assembly	Total
Direct Materials	$                     760	$                    330	$             1,090
Direct Labor cost	$                     162	$                    320	$                482
Manufacturing overhead applied	$                     765	$                    200	$                965
Total Cost of Job 408			$             2,537
Total Cost of Job 408			$       2,537.00
Markup			$       1,902.75
Selling Price of Job 408			$       4,439.75

3. Selling price of Job 408 = $4439.75

4. Selling price of Job 408 = $4571

If you have any query, kindly comment with your query and please mark thumbs up.