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Chapter 2 Applying Excel Student Form

The document provides information about manufacturing overhead costs and job costing for two departments, milling and assembly. It gives overhead rates, direct costs, and machine hours for a job in each department. It then walks through 5 steps to [1] calculate total overhead for each department, [2] determine the predetermined overhead rate, [3] apply overhead to a specific job, [4] calculate total job cost, and [5] determine the selling price by applying a markup percentage. The goal is to demonstrate how to use overhead rates and job costing information to accurately estimate costs and prices.

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Némesis Figuereo
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277 views2 pages

Chapter 2 Applying Excel Student Form

The document provides information about manufacturing overhead costs and job costing for two departments, milling and assembly. It gives overhead rates, direct costs, and machine hours for a job in each department. It then walks through 5 steps to [1] calculate total overhead for each department, [2] determine the predetermined overhead rate, [3] apply overhead to a specific job, [4] calculate total job cost, and [5] determine the selling price by applying a markup percentage. The goal is to demonstrate how to use overhead rates and job costing information to accurately estimate costs and prices.

Uploaded by

Némesis Figuereo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Chapter 2: Applying Excel

Data
Markup on job cost 75%

Department
Milling Assembly
Machine-hours 60,000 3,000
Direct labor-hours 8,000 40,000
Total fixed manufacturing overhead cost $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 407 Department


Milling Assembly
Machine-hours 90 4
Direct labor-hours 5 20
Direct materials $800 $370
Direct labor cost $70 $280

Enter a formula into each of the cells marked with a ? below

Step 1: Calculate the estimated total manufacturing overhead cost for each department
Milling Assembly
Total fixed manufacturing overhead cost 390,000 $500,000
Variable manufacturing overhead per machine-hour or direct labor-hour $2.00 $3.75
Total machine-hours or direct labor-hours 60,000 40,000
Total variable manufacturing overhead $120,000 $150,000
Total manufacturing overhead $510,000 $650,000

Step 2: Calculate the predetermined overhead rate in each department


Milling Assembly
Total manufacturing overhead $510,000 $650,000
Total machine-hours or direct labor-hours 60,000 40,000
Predetermined overhead rate per machine-hour or direct labor-hour $8.50 $16.25

Step 3: Calculate 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 $16.25
Machine-hours or direct labor-hours for the job 90 20
Manufacturing overhead applied $765.00 $325.00

Step 4: Calculate the total job cost for Job 407


Milling Assembly
Direct materials $800.00 $370.00
Direct labor cost $70.00 $280.00
Manufacturing overhead applied 765 $325.00
Total cost of Job 407

Step 5: Calculate the selling price for Job 407


Total cost of Job 407
Markup
Selling price of Job 407
Total
$1,170.00
$350.00
$1,090.00
$2,610.00

2,610.00
1,957.50
4,348.75

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