"Blast itl" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $10,100. 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 $199,000 $400,000 $796,000 $96,000 Fabricating $299,000 $538,200 Direct labor Manufacturing overhead Total plant $898,000 $1,430,200 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: Departmer Machining Assembly $900 $5,700 $1,700 $13,000 Fabricating $11.900 $6,600 Direct materials Direct labor Manufacturing overhead Total plant $18,500 $21,300 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used. (Input all amounts as positive values. Omit the "$" sign in your response.) $ $ 18800 15000 Fabricating Machining Assembly Total Plant Overapplied Overapplied Underapplied Overapplied overhead cost overhead cost overhead cost overhead cost "Blast itl" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $10,100. 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 $199,000 $400,000 $796,000 $96,000 Fabricating $299,000 $538,200 Direct labor Manufacturing overhead Total plant $898,000 $1,430,200 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: Departmer Machining Assembly $900 $5,700 $1,700 $13,000 Fabricating $11.900 $6,600 Direct materials Direct labor Manufacturing overhead Total plant $18,500 $21,300 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used. (Input all amounts as positive values. Omit the "$" sign in your response.) $ $ 18800 15000 Fabricating Machining Assembly Total Plant Overapplied Overapplied Underapplied Overapplied overhead cost overhead cost overhead cost overhead cost
