"Blast it$!"$ said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $$3,000.$ It seems we're Assume that it is customary in the industry to bid jobs at $150\%$ of total manufacturing cost $($direct materials, direct labor, and

applied overhead$).$ What would the bid price have been if departmental predetermined overhead rates had been used to apply

overhead cost?

Company's bid price

either too high to get the job or too low to make any money on half the jobs we bid."

Teledex Company manufactures products 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 fixed$)$ 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 departments as follows: