Case $3-26($Algo$)$ Plantwide versus Departmental Overhead Rates; Pricing $[$LO$3-1,$ LO$3-2,$ LO$3-3,$ LO$3-4]"$Blast it$!"$ said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $$3,000.$ it seems we're either too nign to get the job or too low to make any money on half the jobs we bid."Teledex Company manufactures products to customers specifications and uses a job$-$order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead $($assumed to be all fixed$)$ to jobs. The following estimates were made at the beginning of the year:Manufacturing overheadDirect laborFabricating$ $372,750$$ $213,000$DepartmentMachining$ $426,000$$ $106,500$Assembly$ $95,850$$ $319\mathrm{.}500$Total Plant$9894,668$$ $539,000$Jobs require verying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows:DepartmentFabracatingMachiningAssemblyDinect materials$ $4,300$$ $3002\mathrm{.}298$Direct labor$ $5,400$$ $60074500$Toral Plant$57,568-13,700$Manufacturing overheadRequired:$1.$ 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$\mathrm{.}2.$ 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.o$.$ Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job$\mathrm{.}4.$ 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 rate?b$.$ What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?