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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

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"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: Department FabricatingMachining Assembly Total Plant Manufacturing overhead $ 379, 750 $434, 000 $ 97, 650 $911, 400 Direct labor $ 217, 000 $108, 500 $325, 500 $651, 000 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: Department Fabricating Machining Assembly Total Plant Direct materials $4, 700 $300 $3, 100 $ 8, 100 Direct labor $6, 200 $ 600 $7, 900 $14, 700 Manufacturing overhead

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