Question

2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics: А B с 1 Chapter 2: Applying Excel Cost summary for Job 408 2 3 4 5 Machine-hours Direct labor hours Direct materials cost Direct labor cost Department Milling Assembly 70 2 5 40 880$ 440 95 $ 640 6 7 $ $ 8

Answer 1

2.
Selling price of Job 408 = $5337.50

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	70	2
Direct Labor hours	5	40
Direct Material	$                  880	$                  440
Direct Labor Cost	$                    95	$                  640
	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	70	40
Manufacturing overhead applied	$                  595	$                  400
	Milling	Assembly	Total
Direct Materials	$                  880	$                  440	$            1,320
Direct Labor cost	$                    95	$                  640	$                735
Manufacturing overhead applied	$                  595	$                  400	$                995
Total Cost of Job 408			$            3,050
Total Cost of Job 408			$       3,050.00
Markup			$       2,287.50
Selling Price of Job 408			$      5,337.50

3.
Selling Price of Job 408 = $5337.50
Machine hours has not impact on assembly

4. Selling Price of Job 408 = $5775

Formula Sheet

	Milling	Assembly
Total Fixed Manufacturing Overhead	=B10	=C10
Variable manufacturing overhead per machine hour	=B11	=C12
Total Machine hours or direct labor hours	=B8	=C9
Total Variable Manufacturing Overhead	=B26*B27	=C26*C27
Total Manufacturing Overhead	=B25+B28	=C25+C28
	Milling	Assembly
Total Manufacturing Overhead	=B29	=C29
Total Machine hours or direct labor hours	=B27	=C27
Predetermined Overhead rate	=B33/B34	=C33/C34
	Milling	Assembly
Predetermined Overhead rate	=B35	=C35
Machine hours or direct labor hours for the job	=B16	=C17
Manufacturing overhead applied	=B39*B40	=C39*C40
	Milling	Assembly	Total
Direct Materials	=B18	=C18	=B45+C45
Direct Labor cost	=B19	=C19	=B46+C46
Manufacturing overhead applied	=B41	=C41	=B47+C47
Total Cost of Job 408			=D45+D46+D47
Total Cost of Job 408			=D48
Markup			=D51*B4
Selling Price of Job 408			=D51+D52

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