CASE LO2-1, LO2-2, LO2-3, LO2-4 "Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $2,000 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 uses a job-order costing system. The company P 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: Department Fabricating Machining Assembly Total Plant Manufacturing overhead $350,000 $400,000 $90,000 $840,000 Direct labor $200,000 $100,000 $300,000 $600,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufac costs in the three departments as follows: Required: Department Fabricating Machining Assembly Total Plant Direct materials $3,000 $200 $1,400 $4,600 Direct labor $2,800 $500 $6,200 $9,500 Manufacturing overhead ? ? ? ? 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 predetermine overhead rates based on direct labor cost. Under these conditions: