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: 1 Chapter 2: Applying Excel 2 3 4 Cost summary for Job 408 5 Machine-hours 6 Direct labor-hours 7 8 Direct materials cost Direct labor cost $ $ Department Selling price for Job 408 Milling 70 5 870 с Assembly $ 85 $ 4 20 440 360 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 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 6,000 machine-hours? (Round your final answer to 2 decimal places.) 4. 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)
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: 1 Chapter 2: Applying Excel 2 3 4 Cost summary for Job 408 5 Machine-hours 6 Direct labor-hours 7 8 Direct materials cost Direct labor cost $ $ Department Selling price for Job 408 Milling 70 5 870 с Assembly $ 85 $ 4 20 440 360 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 3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine- hours in the Assembly Department increases from 3,000 machine-hours to 6,000 machine-hours? (Round your final answer to 2 decimal places.) 4. 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:EXHIBIT 2 - 5 Dickson Company: An Example Using Multiple Predetermined Overhead Rates Step 1: Calculate the estimated total manufacturing overhead cost for each department.
Milling Department Overhead Cost (Y) = $390,000+ ($2.00 per MH \times 60, 000 MHS) = $390,000+ $120,000 = $510,000 Assembly Department Overhead Cost (Y) = $
500,000+ ($3.75 per DLH \times 80, 000 DLHS) = $500,000+ $300,000 = $800,000 Step 2: Calculate the predetermined overhead rate in each department. Milling Department
Overhead Rate = $510,000/60, 000 machine - hours = $8.50 per machine - hour Assembly Department Overhead Rate = $800,000/80, 000 direct labor - hours =
$10.00 per
direct labor - hour Step 3: Calculate the amount of overhead applied from both departments to Job 407. Milling Department: Overhead Applied to Job 407 = $8.50 per MH \times
90 MHs = $765 Assembly Department: Overhead Applied to Job 407 = $10.00 per DLH \times 20 DLHs = $200 Step 4: Calculate the total job cost for Job 407. Milling Assembly
Total Direct materials $ 800 $ 370 $ 1,170 Direct labor $ 70 $ 280 350 Manufacturing overhead applied $ 765 $ 200 965 Total cost of Job 407 $ 2, 485 Step 5: Calculate the selling price
for Job 407. Total cost of Job 407 $ 2,485.00 Markup ($2,485 \times 75 %) 1,863.75 Selling price of Job 407 $ 4, 348.75
Transcribed Image Text: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:
с
1 Chapter 2: Applying Excel
2
3 Cost summary for Job 408
4
5
Machine-hours
6 Direct labor-hours
7
8
Direct materials cost
Direct labor cost
$
Selling price for Job 408
$
B
Selling price for Job 408
Department
Milling
70
5
870
Assembly
$
85 $
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
4
20
440
360
3. Without changing the data for the job from requirement 2 above, what is the selling price for Job 408 if the total number of machine-
hours in the Assembly Department increases from 3,000 machine-hours to 6,000 machine-hours? (Round your final answer to 2
decimal places.)
4. 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 50,000 direct labor-hours? (Round your final answer to 2 decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education