Job-order Costing Excel Analytics Assignment

Ozuna Company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. For job costing purposes, it uses an average direct labor wage rate of $20 per hour. The company has been struggling financially; accordingly, it has asked you to conduct a job profitability study beginning with a thorough critique of its existing cost system. To keep the scope of your project manageable, you have chosen a subset of 12 jobs from the many jobs completed by the company during the year. Your goal is to complete the table shown below and comment on the insights that it provides: Correct

Excel Analytics 02-02 (static) Part 1-3

1a. Using PivotTable, calculate the total direct materials cost for each of the 12 jobs.

1b. What is the total direct materials cost for Jobs 5 and 11?

2a. Using PivotTable, calculate the total direct labor cost and total direct labor hours for each of the 12 jobs.

2b. What is the total direct labor cost for Jobs 3 and 10?

	Job 3	Job 10
The total direct labor cost is

2c. What are the total direct labor hours for Jobs 3 and 10?

	Job 3	Job 10
The total direct labor hours is

3a. For each of the seven variable manufacturing overhead expenses (highlighted in yellow), create a formula that calculates the estimated amount of the expense for this year. (Hint: Use last year’s actual amount of each expense and the actual total labor hours [cell B39] as the basis for this year’s estimates.)

3b. and 3c. What is the estimated indirect materials cost in the Molding Department (cell E17) and the estimated utilities cost in the Fabrication Department (cell E21)?

Solution – Excel Analytics 02-02 (static) Part 1-3

Excel Analytics 02-02 (static) Part 4

4a. Create a formula in cell E40 that calculates a plantwide predetermined overhead rate this year. predetermined overhead rate = estimated overhead costs/ estimated direct labor hours

4b. What is the plantwide predetermined overhead rate for this year?

The predetermined overhead rate is

Solution – Excel Analytics 02-02 (static) Part 4

The plantwide predeterminded overhead rate is $ 58.07

Excel Analytics 02-02 (static) Part 5

5a. Using formulas that refer to your answers from requirements 1-4, calculate the direct materials, direct labor, and applied overhead cost for each of the 12 jobs. (Hint: Use VLOOKUP to reference values from the pivot tables you created in requirements 1 and 2.)

5b. What is the amount of applied overhead for Jobs 4 and 9?

	Job 4	Job 9
The applied overhead is

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Excel Analytics 02-02 (static) Part 6

6a. create formulas that compute the total job cost and gross margin for each of the 12 jobs.

6b. What is the total cost of Jobs 3 and 12?

	Job 3	Job 12
The total cost is

6c. What is the gross margin Jobs 1 and 8?

	Job 1	Job 8
The gross margin is

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Excel Analytics 02-02 (static) Part 7

a. According to the chart, which jobs have the highest and lowest gross margins?

The job with the highest gross margin is job number
The job with the lowest gross margin is job number

b. According to the chart, which of the following statements are true (you may select more than one answer). (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

The eight most profitable jobs produced a gross margin slightly above $4,000.
A total of four jobs decreased the company’s overall gross margin.
Jobs 8 and 2 both decreased the total gross margin.
The company’s total gross margin for the 12 jobs included in the chart is less than $2,500.

Excel Analytics 02-02 (static) Part 8

8a. According to the chart, which jobs have the lowest and highest labor intensity percentages?

The job with the lowest labor intensity percentage is
The job with the highest labor intensity percentage is

8b. According to the chart, which of the following statements are true regarding the company’s existing cost system (you may select more than one correct answer)? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

The 12 jobs depicted in the combo chart suggest that gross margin and labor intensity percentage tend to have an inverse relationship.
The 12 jobs depicted in the combo chart suggest that gross margin and labor intensity percentage tend to move in tandem because they are correlated with one another.
The existing cost system is most likely undercosting labor intensive products.
The existing cost system is most likely overcosting labor intensive products.