Question

Fill in the ? boxes with the correct equations

1 Chapter 2: Applying Excel 3 Data 4 Markup on job cost 75% 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 Department Milling Assembly 90 20 16 Machine-hours 17 Direct labor-hours 18 Direct materials 19 Direct labor cost $800 $70 $370 $280 24 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 Milling Assembly 25 Total fixed manufacturing overhead cost 26 Variable manufacturing overhead per machine-hour or direct labor-hour 27 Total machine-hours or direct labor-hours 28 Total variable manufacturing overhead 29 Total manufacturing overhead 30 Milling 31 Step 2: Calculate the predetermined overhead rate in each department 32 Assembly 33 Total manufacturing overhead 34 Total machine-hours or direct labor-hours 35 Predetermined overhead rate per machine-hour or direct labor-hour 36 37 Step 3: Calculate the amount of overhead applied from both departments to Job 407 Milling Assembly 39 Predetermined overhead rate per machine-hour or direct labor-hour 40 Machine-hours or direct labor-hours for the job 41 Manufacturing overhead applied 38 A

Answer 1

Data
Markup	75%
	Milling	Assembly
Machine hours	60000	3000
Direct labor hours	8000	80000
Total fixed mnaufacturing overhead cost	390000	500000
Variable manufacturing overhead per machine hour	2
Variable manufacturing overhead per Direct labor hour		3.75
Cost summary
	Milling	Assembly
Machine hours	90	4
DLH	5	20
Direct material	800	370
Direct labor	70	280
	Milling	Assembly
Total fixed manufacturing overhead	390000	500000
Variable per hour	2	3.75
Total hours	60000	80000
Total variable	120000	300000
Total manufacturing	510000	800000
	Milling	Assembly
Total manufacturing	510000	800000
Total hours	60000	80000
Predetermined rate	8.5	10
	Milling	Assembly
Predetermined rate	8.5	10
Hours for the job	90	20
Applied	765	200
	Milling	Assembly	Total
Direct material	800	370	1170
Direct labor	70	280	350
Overhead applied	765	200	965
Total cost	1635	850	2485
Total cost			2485
Markup			1863.75
Selling price			4348.75

B 8000 390000 80000 500000 3.75 А 9 Direct labor hours 10 Total fixed mnaufacturing overhead cost 11 Variable manufacturing overhead per machine hour 12 Variable manufacturing overhead per Direct labor hour 13 14 Cost summary 15 16 Machine hours 17 DLH 18 Direct material 19 Direct labor 20 Assembly Milling 90 5 800 20 370 280 21 22 Assembly =C10 25 Total fixed manufacturing overhead 26 Variable per hour 27 Total hours 28 Total variable 29 Total manufacturing Milling =B10 =B11 =B8 =B26*827 =B25+B28 =C12 =C9 =C26*C27 =C25+C28 30 31 32 33 =A29 34 Total hours 35 Predetermined rate 36 Milling =B29 =B27 =B33/B34 Assembly =C29 =C27 =C33/C34 37 Milling Assembly =C35 =B35 90 =B39*340 =C39*C40 38 39 =A35 40 Hours for the job 41 Applied 42 43 44 45 Direct material Milling 800 Assembly 370 Total =B45+C45