"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $2,000. 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: Department Fabricating Machining Assembly Total Plant Manufacturing overhead 353,500 202,000 404,000 101,000 90,900 S 848,400 $ 303,000 Direct labor 606,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three department as follows: Department Machining S 200 Fabricating $3,200 $3,200 Assembly Total Plant Direct materials $1,600 $6,400 5,000 Direct labor 500 $10,100 Manufacturing overhead 2 Required: 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 plantwide predetermined overhead rate, the company had used departmental predetermined overhead 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 manufacturing 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 total 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? Required 1B Required 2B Required 4A Required 4B Required 1A Required 2A Compute the plantwide predetermined rate for the current year. % of direct labor cost Predetermined overhead rate Required 1B Required 2A Required 2B Required 4A Required 1A Required 4B Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job Manufacturing overhead cost applied Required 1A Required 1B Required 2A Required 2B Required 4A Required 4B Required 2A Compute the predetermined overhead rate for each department for the current year. Predetermined Overhead Rate Fabricating department Machining department Assembly department of direct labor cost % of direct labor cost % of direct labor cost % Required 1A Required 1B Required 2B Required 4A Required 2A Required 4B Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job Manufacturing overhead cost applied Required 2A Required 4B Required 1A Required 1B Required 2B Required 4A What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate? Company's bid price Required 1A Required 1B Required 4B Required 2A Required 2B Required 4A What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? Manufacturing overhead cost applied