Cost Accounting -See word attachment for complete question

Briggs Precision is a small firm that manufactures precision parts, promising consistency and high accuracy with tolerances to .0005. Briggs operates two production departments: a CNC Machining Center and a Finishing Department. The machining department uses computer numerical control (CNC) machines that design and manufacture parts according to desired specification and precision. Human operators manage the equipment and move the parts from machine to machine. In the Finishing Department, finishes and coatings (such as electroplating, anodizing, and nickel and zinc plating) are applied to increase corrosion and wear resistance of metal parts.

Over time, Briggs has developed a good reputation for excellence. Briggs operates a job costing system for accounting purposes. Two support departments are used to provide needed services for the machining and finishing departments. Budgeted annual data pertaining to the overhead for the various departments is given below:

Briggs Precision is a small firm that manufactures precision parts, promising consistency and high accuracy with tolerances to .0005. Briggs operates two production departments: a CNC Machining Center and a Finishing Department. The machining department uses computer numerical control (CNC) machines that design and manufacture parts according to desired specification and precision. Human operators manage the equipment and move the parts from machine to machine. In the Finishing Department, finishes and coatings (such as electroplating, anodizing, and nickel and zinc plating) are applied to increase corrosion and wear resistance of metal parts. Over time, Briggs has developed a good reputation for excellence. Briggs operates a job costing system for accounting purposes. Two support departments are used to provide needed services for the machining and finishing departments. Budgeted annual data pertaining to the overhead for the various departments is given below: Maintena Machini Finishi Power nce ng ng $400,0 $400,00 $200,0 Fixed $300,000 00 0 00 270,00 200,00 Variable 130,000 300,000 0 0 $670,0 $700,00 $400,0 Total $430,000 00 0 00 5,000,00 1,000,0 KWH 4,000,000 0 00 Maintenance hours 2,000 2,000 6,000 Machine hours (practical 100,00 50,000 volume) 0 During the first month of the fiscal year, a potential customer from a nearby geographical region not normally serviced by Briggs, approached the company and asked Briggs to bid on a job that would consist of 750 specially designed parts for a small aircraft engine. The potential customer indicated that they had already received a bid of $101 per part from another firm but that if Briggs could beat the price, the job would be theirs. Barry Norton, owner and manager of Briggs, was interested but was not certain if the bid could be won as the part specifications required precision machining. Connie Baker, the firm's controller was asked to prepare the initial bid to see if Briggs could be competitive. After consulting with the production managers of the two departments Connie estimated that the cost of direct materials and direct labor would be $28,000 and $6,000 respectively. She was confident that overhead would be the determining factor. Briggs uses departmental rates based on machine hours. Connie uses the direct method to assign costs of support departments to the producing departments. She estimates that the job (Job 725) would use 1,000 and 500 machine hours in Machining and Finishing, respectively. Required: Using the direct method, determine the budgeted overhead costs for a Machining and Finishing. (Round allocation ratios to six decimal places . and costs assigned to the nearest dollar. Use your rounded values in subsequent requirements.) Machining: $ Budgeted variable Item1 overhead Budgeted fixed overhead Total Finishing: Budgeted variable overhead Item2 $ Item3 $ Item4 Budgeted fixed overhead Total Item5 $ Item6 Calculate the variable and fixed overhead rates for each department. b (Round rates to the nearest cent. Use your rounded values in subsequent . requirements.) per machine hour Machining: $ Variable overhead rate Item7 Fixed overhead rate Total overhead rate Finishing: Variable overhead rate Fixed overhead rate Item8 $ Item9 $ Item10 Item11 $ Total overhead Item12 rate Prepare a simplified job sheet for Job 725. (Round overhead costs c assigned to the nearest dollar. Use your rounded values in subsequent . requirements.) Job 725 $ DM Item13 DL Item14 VOH Item15 FOH Item16 $ Job Cost Item17 Briggs uses cost plus 20% for bids. Calculate the per unit bid price for Job d 725. (Round to the nearest cent. Use your rounded values in subsequent . steps.) Unit Price $ Item18 Summary Questions: In assigning support department costs to the producing departments, the direct method 1 - Select your answer . . Item19 Jobs are assigned overhead by 2 . - Select your answer - . Item20 Check My Work (3 remaining) Icon Key Required: The method takes into account all - Select your answer Item1 a . interactions of the support departments before allocating costs to the producing departments. Use the method of allocation that fully considers support department interactions to assign support department costs to the producing b departments. Round allocation ratios to three decimals and the costs . allocated to the nearest dollar. Use a single charging rate (assign total support costs--no need to distinguish between fixed and variable costs). (Use your rounded values in subsequent requirements.) Machining department: $ Total budgeted overhead Item2 Finishing department: $ Total budgeted overhead: Item3 Calculate the departmental overhead rates that reflect full interaction of support departments (Round to the nearest cent. Use your rounded values c in subsequent requirements.). Allocate the total support overhead of each . support department using you chosen method. Only the total overhead rate needs to be calculated. Machinin g: Finishing : $ per machine Item4 hour per machine $ Item5 hour Using the new departmental rates plus 20%, recalculate the unit bid price d for Job 725 (Round to the nearest cent. Use your rounded values in . subsequent requirements.): Unit Price: $ Item6 Summary Questions: The new unit bid price using the method - Select your answer - 1 of allocation was $ . Item7 lower than the bid price using the Item8 direct method. Suppose that the best competitor bid was $103. In this case, the method would have produced a bid that 2 - Select your answer Item9 . was by $ per unit. - Select your answer - . Item10 Item11 Calculate a new bid price for Job 725 (round departmental rates and bid price to the nearest cent). Bid price: $ per unit Item1 b Calculate the cost of power acquisition for the maintenance department . Power cost for maintenance department: $ Item2 Summary Questions: By increasing efficiency through the use of a cheaper input, the bid price is than the best competitor price by $ 1 - Select your answer Item3 . (Round your dollar value answers to the nearest cent.) Item4 The reduction in direct maintenance costs (fixed and variable) because of 2 eliminating the power department totals $ . . Item5 : The current direct cost of maintenance - Select your answer - Item6 ($520,000) is the original direct costs less the savings from no longer having to service the power department plus the direct costs of outside power acquisition