Question

Every ? mark needs a formula, Thanks!

1 Chapter 2: Applying Excel 3 Data 4 Markup on job cost 75% 7 8 Machine-hours 9 Direct labor-hours 10 Total fixed manufacturing overhead cost 11 Variable manufacturing overhead per machine-hour 12 Variable manufacturing overhead per direct labor-hour Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 13 14 Cost summary for Job 407 15 Department Milling Assembly 90 20 16 Machine-hours 17 Direct labor-hours 18 Direct materials 19 Direct labor cost $800 $70 $370 $280 207 21 Enter a formula into each of the cells marked with a ? below 22 23 Step 1: Calculate the estimated total manufacturing overhead cost for each department 24 Milling Assembly 25 Total fixed manufacturing overhead cost 26 Variable manufacturing overhead per machine-hour or direct labor-hour

53 Selling price of Job 407

Answer 1

Step 1 Estimated total manaufacturing overhead cost for each department
	Milling	Assembly
Total fixed manufacturing overhead cost	390000	500000
Variable manufacturing overhead per machine hour or direct labor hour	2	3.75
Total machine-hours or direct labor -hours	60000	80000
Total variable manufacturing overhead	120000	300000
	(60000 X $2)	(80000 X $3.75)
Total manufacturing overhead	510000	800000
	(390,000+120,000)	(500,000+300,000)
Step 2: Predetermined overhead rate in each deparment
	Milling	Assembly
Total manufacturing overhead	510000	800000
Total machine-hours or direct labor -hours	60000	80000
Predetermined overhead rate per machine hour or direct labor hour	8.50	10.00
	(510,000/60,000)	(800,000/80,000)
Step 3 the amount of overhead applied from both departments to Job 407
	Milling	Assembly
Predetermined overhead rate per machine hour or direct labor hour	8.50	10.00
Machine-hours or direct labor -hours for the job	90	20
Manufacturing overhead applied	765	200
	(8.50x90)	(10x20)
Step 4 Total job cost for Job 407
	Milling	Assembly	Total
Direct Materials	800	370	1170
Direct labor cost	70	280	350
Manufacturing overhead applied	765	200	965
Total cost of Job 407			2485
Step 5 The selling price for Job 407
Total cost of Job 407			2485.00
Markup		(2485 x75%)	1863.75
Selling price of Job 407			4348.75

Milling 390000 2 Step 1 Estimated total manaufacturing overhead cost for each department 3 4 Total fixed manufacturing overhead cost 5 Variable manufacturing overhead per machine hour or direct labor hour 6 Total machine-hours or direct labor -hours 7 Total variable manufacturing overhead 6000C =B6%B5 (6000) X $2) =+B7+B4 (390,000+120,000) Assembly 500000 3.75 80000 =C6 C5 (80000 X $3.75) =+C7+C4 (500,000+300,000) Total manufacuring overhead 9 10 11 Step 2: Predetermined overhead rate in each deparment 13 Total manufacuring overhead 14 Total machine-hours or direct labor-hours 15 Predeterminec overhead rate per machine hour or direct labor hour Milling -B9 6000C =B13814 (510,000/60,000) Assembly =C9 80000 =C13/C14 (800,000/80,000) Milling =B15 Assembly =C15 20 =+C19%C20 (10x20) =+B194B20 (8.50,90) 17 Step 3 the amcunt of overhead applied from both departments to Job 407 18 19 Predeterminec overhead rate per machine hour or direct labor hour 20 Machine-hours or direct labor-hours for the job 21 Manufacturing overhead applied 22 23 Step 4 Total job cost for Job 407 24 25 Direct Materials 26 Direct labor cost 27 Manufacturing overhead applied 28 Total cost of Job 407 29 30 Step 5 The seling price for Job 407 31 Total cost of Job 407 Total Assembly 370 Milling 800 70 =B21 280 =B25+C25 =B26+C26 =B27+C27 =SUM(D25:D27) =C21 =D28