"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $9,900. 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 operates a job-order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year: Department Machining Assembly $202,000 $401,000 $808,000 $96,240 Fabricating $299,000 $538,200 Direct labor Manufacturing overhead Total plant $902,000 $1,442,440 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: Direct materials Direct labor Manufacturing overhead Fabricating $12,100 $6,400 ? Department Machining Assembly $900 $5,500 $1,700 $12,900 ? ? Total plant $18,500 $21,000 ? The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Requirement 1: Assuming the use of a plantwide overhead rate: a. Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.) Predetermined overhead rate % of direct labor cost b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Manufacturing overhead cost Requirement 2: Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions: a.Compute the rate for each department for the current year. (Omit the "%" sign in your response.) Predetermined overhead rate Fabricating Department Machining Department Assembly Department b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. (Omit the "$" sign in your response.) Manufacturing overhead cost $ Requirement 3: 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? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Company's bid price b. What would the bid price have been if departmental overhead rates had been used to apply overhead cost? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Company's bid price Requirement 4: At the end of the year, the company assembled the following actual cost data relating to all jobs worked on during the year: Direct materials Direct labor Manufacturing overhead Fabricating $760,000 $321,000 $560,000 Department Machining Assembly $90,000 $411,000 $211,000 $340,000 $830,000 $92,000 $1,261,000 $872,000 $1,482,000 a. Compute the underapplied or overapplied overhead for the year, assuming that a plantwide overhead rate is used. (Round your answer to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.) (Click to select) overhead cost b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used. (Input all amounts as positive values. Omit the "$" sign in your response.) Fabricating Machining Assembly Total Plant (Click to select) (Click to select) (Click to select) (Click to select) overhead cost overhead cost overhead cost overhead cost
