Blast it! said David Wilson, president of Teledex Company. Weve just lost the bid on the Koopers job by $4,000. It seems were 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 Fabricating Machining Assembly Total Plant Direct labor

$ 204,000 $ 102,000 $ 306,000 $ 612,000

Manufacturing overhead $ 357,000 $ 408,000 $ 91,800 $ 856,800

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 $ 3,400 $ 300 $ 1,800 $ 5,500

Direct labor $ 3,600 $ 600 $ 6,600 $ 10,800

Manufacturing overhead ? ? ? ?