Comprehensive Problem 5 (Algo) Part f eBook Print f. Would your response to part e change if the St. Cloud plant could use the facilities necessary to produce parts for job no. References 110 for another job that could earn an incremental profit of $25,000? Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractorComprehensive problem 0 Saved Help Save& Exit Submit 6v Part 1 of 5 - points eBook Print Qeterences Required information Comprehensive Problem 5 (Algo) [The following information applies to the questions displayed below. ] The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses ajob order costing system for its batch production processes The St. Cloud plant has two departments through which mostjobs pass. Plant-wide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $280,000. Each department's overhead consists primarily of depreciation and other machinerelated expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department Department A B Budgeted department overhead (excludes plantwide overhead) $ 120,000 $566,500 Actual department overhead 144,000 584,500 Expected total activity: Direct labor hours 60,000 20,000 Machinehours 15,000 55,000 Actual activity: Direct labor hours 61,000 19,000 Machinehours 15,700 57,000 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for severaljobs. Projected data pertaining only tojob no. 110 are as follows. CT.) Print Comprehensive Problem 5 (Algo) Part e References e. A St. Cloud subcontractor has offered to produce the parts for job no. 110 for a price of $7 per unit. Assume the St. Cloud sales force has already committed to the bid price based on the calculations in part b. Should the St. Cloud plant buy the $7 per unit part from the subcontractor or continue to make the parts for job no. 110 itself? O Continue to make the part O Buy part from the subcontractor10 c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 25 percent to total manufacturing points costs. What would be the bid for job no. 110 using the overhead rate from part a? Skipped c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 25 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? c-3. Which of the overhead allocation methods would you recommend?5 Required: points a-1. Assume the St. Cloud plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected total direct labor hours to compute the overhead rate. a-2. What is the expected cost per unit produced for job no. 110?10' b-1. Find the plant wide overhead rate by using expected machine hours. pOints b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit forjob 110 using the three separate rates computed in b-l and b2. Part 1 of 5 - 5 poi nts eBook Print References Direct materials Direct labor cost: Department A (2,600 hr) Department B (800 hr) Machinehours projected: Department A Department B Units produced $22,500 39,000 10,000 120 1,200 14,000