"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 elther 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. Manufacturing overhead Direct labor Department Fabricating Machining Assembly Total Plant $ 372,750 $426,880 $ 95,650 $ 894,680 $ 213,000 $ 196,560 5 319,5ee $ 639,689 Jobs requtre 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 $4,300 $5,400 Department Machining $300 $ 600 Assembly $ 2,700 $7,500 Total Plant $ 7.300 $13,500 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 rato? b.What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? Complete this question by entering your answers in the tabs below. RIA Required 10 Required 2A Required 25 Required Required 43 Using the company's plantwide approach compute the plant wide predetermined rate for the current year Complete this question by entering your answers in the tabs below. Required 1A Required 13 Required 2A Required 2B Required 4 Required 43 Using the company's plantwide approach, compute the plant wide predetermined rate for the current yean Predetermined overhead rate % of direct labor cost Required 13 > Complete this question by entering your answers in the tabs below. Required 1A Required 13 Required 2A Required 28 Required 4A Requirud 45 Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would have applied to the Koopers job. Manufacturing overhead cost applied Required 1 Required 2A Complete this question by entering your answers in the tabs below. Required in Required 18 Required 2A Required 20 Required Required 48 Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmer overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department Year Predetermined Overhead Rate Fabricating department Machining peatment Assembly Separtme of direct labor cost of direct labor cost 15 of direct labor cos Re 1 Roman 2 Complete this question by entering your answers in the tabs below. Required Required 10 Required 2A Requred2 Required 1A Required to Suppose that instead of using a plantwide predetermined overhead rate the company had used departmental overhead rates based on direct labor cost. Determine the amount of manufacturing overhead cost that would h applied to the Koopers job. Manufacture overhead cost applied
