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Blast it 3aid David Wilson, president of Teledex Company. We'vejust lost the Bid on the Koopers job by $2000, It seems were either too high

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"Blast it"" 3aid David Wilson, president of Teledex Company. "We'vejust lost the Bid on the Koopers job by $2000, It seems were either too high to get the job or too low to make any money on half the jobs we bid." Teledex Company manufactures proctucts to customers' specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fored) to jobs. The following estimates were made at the beginning of the year: Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three deportments as follows Requlred: 1. Using the company's plantwide approach: a. Compute the plantwide predetermined rate for the current year b. Determine the amount of manufacturing overhead cost that would have been applied to the koopers job. 2. Suppose that instead of using a piantwide predetermined overhead tate, the company had used deportmental predetemmined ovechesd rates based on direct labor cost Under these concitions: a. Compute the predetermined overhead rate for each department for the cumrent yeor b. Detemmine the ampunt of manufacturing overhead cost that would have been applied to the Koopers job. 4. Assume that it is customary in the industry to bid jobs ot 150 of of totalmanufacturing cost idirect materials cdirect labor, and appied Required: 1. Using the company's plantwide approach. D. Compute the plantwide predetermined rate for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job 2. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhesd rates based on direct labor cost Under these conditions: a. Compute the predetermined overhead rate for each department for the current year. b. Determine the amount of manufocturing overhead cost that would have been applied to the Koopers job 4. Assume that it is customary in the industry to bid jobs at 150% of totol manufacturing cost (direct materials, direct labor. and applied overhead). a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate? b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost

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