Cutting	Machining	Assembly	Total
Direct Labor			312,000	211,000	418,000	941,000
Manufacturing Overhead			528,000	946,060	88,000	1,562,060

			Cutting	Machining	Assembly	Total
Direct Materials			11,900	1,000	5,500	18,400
Direct Labor			6,600	1,800	13,000	21,400
Manufacturing Overhead			?	?	?	?

2. Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

a.Compute the rate for each department for the current year.(Round predetermined overhead percentages to the nearest whole percent.)

	Predetermined overhead rate %
cutting
machining
assembly

b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. (Round your predetermined overhead percentages to the nearest whole percent.)

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 Hastings job if the plantwide overhead rate had been used to apply overhead cost?

b.What would the bid price have been if departmental overhead rates had been used to apply overhead cost?

5. At the end of the year, the company assembled the following actual cost data relating to all jobs worked on during the year:

			Cutting	Machining	Assembly	Total
Direct Materials			761,000	90,000	410,000	1,261,000
Direct Labor			317,000	210,000	341,000	868,000
Manufacturing Overhead			561,000	829,000	91,000	1,481,000

a. Compute the underapplied or overapplied overhead for the year, assuming that a plantwide overhead rate is used.

b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used.

cutting	?	overhead cost	?
machining	?	overhead cost	?
assembly	?	overhead cost	?
total plant	?	overhead cost	?