"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

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:

Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department for the current year.

Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined

overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department for the current

year. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined

overhead rates based on direct labor cost. Determine the amount of manufacturing overhead cost that would have been

applied to the Koopers job.

Manufacturing overhead cost applied