Question

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?

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 Chapter 2: Applying Excel 2 3 Cost summary for Job 408 4 Department Milling Assembly 70 5 Machine-hours 3 6 Direct labor-hours 5 40 7 Direct materials cost $ 830 $ 320 8 Direct labor cost $ 80 $ 640 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.)

Answer 1

Selling Price of Job 408 = $5451.25

Markup on job cost	75%
	Department
	Milling	Assembly
Machine hours	60000	3000
Direct Labor hours	8000	40000
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	3
Direct Labor hours	5	40
Direct Material	$              830	$                 320
Direct Labor Cost	$                80	$                 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	40000
Total Variable Manufacturing Overhead	$      120,000	$         150,000
Total Manufacturing Overhead	$      510,000	$         650,000
	Milling	Assembly
Total Manufacturing Overhead	$      510,000	$         650,000
Total Machine hours or direct labor hours	60000	40000
Predetermined Overhead rate	$            8.50	$              16.25
	Milling	Assembly
Predetermined Overhead rate	$            8.50	$              16.25
Machine hours or direct labor hours for the job	70	40
Manufacturing overhead applied	$              595	$                 650
	Milling	Assembly	Total
Direct Materials	$              830	$                 320	$            1,150
Direct Labor cost	$                80	$                 640	$                720
Manufacturing overhead applied	$              595	$                 650	$            1,245
Total Cost of Job 408			$            3,115
Total Cost of Job 408			$       3,115.00
Markup			$       2,336.25
Selling Price of Job 408			$      5,451.25

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

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