Introduction To Managerial Accounting
Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 2, Problem 2AE

This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5. Download the workbook containing this form from Connect, where you will also find instructions about how to use this worksheet form.Chapter 2, Problem 2AE, This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5. , example  1

Chapter 2, Problem 2AE, This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5. , example  2

Chapter 2, Problem 2AE, This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5. , example  3

You should proceed to the requirements below only after completing your worksheet.
Required:
2. Change the total fixed manufacturing overhead cost for the Milling Department in the Data area back to $390,000, keeping ail of theother data the same as in the original example Determine the selling price for a new job, Job 408, with the following characteristics.You need not bother changing the job number from 407 to 408 in the worksheet. Chapter 2, Problem 2AE, This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2-5. , example  4

Expert Solution & Answer
Check Mark
To determine

Selling price: The cost incurred by selling the product in the market is known as the selling price.

Determine the missing figures in the sheet. After finding the missing figures determine the selling price of Job 408 by replacing the current data with the data given in the question.

Answer to Problem 2AE

Solution: The selling price of Job 408 using current data is $4348.75 and the selling price of Job 408 after replacing the current data with the given data is $2800.

Explanation of Solution

This calculation is done in the workbook and it is explained below,

Part -1- The missing figures in the sheet is determined here.

    Chapter 2: Applying Excel
    Data
    Mark-up on job cost75%
    Department
    MillingAssembly
    1Machine hours600003000
    2Direct Labour Hours800080000
    3Total fixed manufacturing overhead cost$3,90,000.00$5,00,000.00
    4Variable manufacturing overhead per machine hour$2.00$ -
    5Variable manufacturing overhead per direct labour hour$ -$ 3.75
    Cost Summary for job 407Department
    MillingAssembly
    6Machine hours904
    7Direct Labour Hours520
    8Direct Materials$800.00$370.00
    9Direct Labour cost$70.00$280.00
    Enter a formula into each of the cells marked with? below
    Step 1: Calculate the estimated total manufacturing overhead cost for each department
    MillingAssembly
    10Total fixed manufacturing overhead (given)$3,90,000.00$5,00,000.00
    11Variable manufacturing overhead per machine hour or direct labour hour (given)$2.00$3.75
    12Total machine hours or direct labour hours (given)6000080000
    13Total Variable manufacturing overhead (11 x 12)$1,20,000.00$3,00,000.00
    14Total manufacturing overhead (10 + 13)$5,10,000.00$8,00,000.00
    Step 2: Calculate the pre-determined overhead rate in each department
    MillingAssembly
    15Total manufacturing overhead (14)$5,10,000.00$8,00,000.00
    16Total machine hours or direct labour hours (given)6000080000
    17Pre-determined overhead rate per machine hour or direct labour hour (15 divided by 16)$8.50$10.00
    Step 3: Calculate the amount of overhead applied to both departments to Job 407
    MillingAssembly
    18Pre-determined overhead rate per machine hour or direct labour hour (17)$8.50$10.00
    19Machine hours or direct labour hours for the job (given)9020
    20Manufacturing overhead applied (18 x 19)$765.00$200.00
    Step 4: Calculate the total job cost for Job 407
    MillingAssembly
    21Direct Materials (given)$800.00$370.00
    22Direct Labour cost (given)$70.00$280.00
    23Manufacturing overhead applied (20)$765.00$200.00
    24Total cost of Job 407 (21 + 22 + 23)$1,635.00$850.00
    Total cost of Job 407 (Milling + Assembly)$2,485.00
    Step 5: Calculate the selling price for Job 407
    MillingAssembly
    25Total cost of Job 407 ( 24)$1,635.00$850.00
    26Mark-up (24 x 75%)$1,226.25$637.50
    27Selling price of Job 407 (25 + 26)$2,861.25$1,487.50
    Total Selling Price (Milling + Assembly)$4,348.75

Part 2 - The selling price of Job 408 by replacing the current data with data given

    Chapter 2: Applying Excel
    Data
    Mark-up on job cost75%
    Department
    MillingAssembly
    1Machine hours600003000
    2Direct Labour Hours800080000
    3Total fixed manufacturing overhead cost$3,90,000.00$5,00,000.00
    4Variable manufacturing overhead per machine hour$2.00$ -
    5Variable manufacturing overhead per direct labour hour$ -$3.75
    Cost Summary for job 408Department
    MillingAssembly
    6Machine hours4010
    7Direct Labour Hours26
    8Direct Materials$700.00$360.00
    9Direct Labour cost$50.00$150.00
    Enter a formula into each of the cells marked with? Below
    Step 1: Calculate the estimated total manufacturing overhead cost for each department
    MillingAssembly
    10Total fixed manufacturing overhead (given)$3,00,000.00$5,00,000.00
    11Variable manufacturing overhead per machine hour or direct labour hour (given)$2.00$3.75
    12Total machine hours or direct labour hours (given)6000080000
    13Total Variable manufacturing overhead (11 x 12)$1,20,000.00$3,00,000.00
    14Total manufacturing overhead (10 + 13)$4,20,000.00$8,00,000.00
    Step 2: Calculate the pre-determined overhead rate in each department
    MillingAssembly
    15Total manufacturing overhead (14)$4,20,000.00$8,00,000.00
    16Total machine hours or direct labour hours (given)6000080000
    17Pre-determined overhead rate per machine hour or direct labour hour (15 divided by 16)$7.00$10.00
    Step 3: Calculate the amount of overhead applied to both departments to Job 408
    MillingAssembly
    18Pre-determined overhead rate per machine hour or direct labour hour (17)$7.00$10.00
    19Machine hours or direct labour hours for the job (given)406
    20Manufacturing overhead applied (18 x 19)$280.00$60.00
    Step 4: Calculate the total job cost for Job 408
    MillingAssembly
    21Direct Materials (given)$700.00$360.00
    22Direct Labour cost (given)$50.00$150.00
    23Manufacturing overhead applied (20)$280.00$60.00
    24Total cost of Job 407 (21 + 22 + 23)$1,030.00$570.00
    Total cost of Job 407 (Milling + Assembly)$1,600.00
    Step 5: Calculate the selling price for Job 408
    MillingAssembly
    25Total cost of Job 407 ( 24)$1,030.00$570.00
    26Mark-up (24 x 75%)$772.50$427.50
    27Selling price of Job 407 (25 + 26 )$1,802.50$997.50
    28Total Selling Price of Job 408 (Milling + Assembly)$2,800.00
Conclusion

Thus, the selling price of Job 408 after replacing the current data with the given data is $2800.

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Chapter 2 Solutions

Introduction To Managerial Accounting

Ch. 2 - Prob. 11QCh. 2 - What is underapplied overhead? Overapplied...Ch. 2 - What is a plantwide overhead rate? Why are...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - This Excel worksheet relates to the Dickson...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Sweeten Company bad no jobs in progress at the...Ch. 2 - Harris Fabrics computes its plantwide...Ch. 2 - Luthan Company uses a plant wide predetermined...Ch. 2 - Computing Total Job Costs and Unit Product Costs...Ch. 2 - Computing Total Job Costs and Unit Product Costs...Ch. 2 - Braverman Company has two manufacturing...Ch. 2 - Job-Order Costing for a Service Company Tech...Ch. 2 - Prob. 7ECh. 2 - Newhard Company assigns overhead cost to jobs on...Ch. 2 - Taveras Corporation is currently operating at 50%...Ch. 2 - Prob. 10ECh. 2 - Varying Plantwide Predetermined Overhead Rates...Ch. 2 - Computing Predetermined Overhead Rates and Job...Ch. 2 - Departmental Predetermined Overhead Rates White...Ch. 2 - Prob. 14ECh. 2 - Plantwide and Departmental Predetermined Overhead...Ch. 2 - Plantwide Predetermined Overhead Rates; Pricing...Ch. 2 - Plantwide and Departmental Predetermined Overhead...Ch. 2 - Job-Order Costing for a Service Company Speedy...Ch. 2 - Multiple Predetermined Overhead Rates; Applying...Ch. 2 - Plantwide versus Multiple Predetermined Overhead...Ch. 2 - Plantwide versus Multiple Predetermined Overhead...
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