Blast said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $2,000. 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 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 $211,000 105,500 $316,500 633,000 $ 369,250 422,000 $ 94,950 886,200 Machining Assembly Total Plant Direct labor Manufacturing overhead Jobs require varying amounts of work in the three departments. The Koopers job, for example, ould have required manufacturing costs in the three departments as follows Department Direct materials Direct labor Manufacturing overhead Fabricating Machining Assembly Total Plant $ 4,100 400 2,500 7,000 $ 5,000 $ 700 7,300 S 13,000 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs Required . Assuming use of a plantwide overhead rate a. Compute the rate for the current year Predetermined overhead rate % of direct labor cost b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job Manufacturing overhead cost Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions: . Compute the rate for each department for the current year. Predetermined Overhead Rate Fabricating Department Machining department Assembly department . Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Manufacturing overhead cost in the industry to bid jobs at 150% of total manufacturing cost (direct Assume that it is customary materials, direct labor, and applied overhead) . What was the company's bid price on the Koopers job if a plantwide overhead rate had been used to apply overhead cost? Company's bid price . What would the bid price have been if departmental overhead rates had been used to apply overhead Company's bid price At the end of the year, the company assembled the following actual cost data relating to all jobs worked on during the year. Department Cutting Machining Assembly Total plant $ 201,000 $ 17,100 $ 125,000 S 343,100 221,000 19,000 273,000 613,000 Manufacturing overhead 379,000 S 443,000 86,000 $ 908,000 Direct materials Direct labor Compute the underapplied or overapplied overhead for the year, assuming that a plantwide overhead rate is used. overhead cost rates are used. (Enter overapplied overhead costs as negative amounts and underapplied overhead costs as positive amounts.) Fabricating Machining Assembly Total plant