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Don't tell me we've lost another bid' exclaimed Janice Hudson, president of Prime Products Inc F'm afraid so, replied Doug Martin, the operations vice president.

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Don't tell me we've lost another bid'" exclaimed Janice Hudson, president of Prime Products Inc "F'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by atoout $12.000 on the Hastings job." " just can't figure it out." sald Hudson. "It seems we're either too high to get the job or too low to make any money on half the jobs we bid. What's happened? Prime Products manufactures specialized goods to customers' specifications and operates a job-order costing system, Manufacturing overhead cost is applied to jobs on the basis of direct labour cost. The following estimates were made at the beginning of the year: Jobs requite varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing coste in the three depurtments as follows: The company uses a plantwide overthead rate to apply manufacturing overhead cost to jobs Required: 1. Assuming the use of a plantwide overhead rister a. Compote the rate for the curcent yeat. b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. 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: o. Compute the rate for each department for the cuirent year. b. Determine the amount of manufacturing overthead cost that would have been applied to the Hastings job. 3. This part of the question is not part of your Connect assignment. 4. Assume that it is customary in the industry to bld jobs at 140% of total manufacturing cost (direct materials, direct labour, and applied overhead). a. What was the company's bid price on the Hastings job? b. What would the bid pice have been if departmental overhead rates had been used to apply overhead cost? 5. At the end of the yeat, the company assembled the following actuaf cost data relating to all jobs worked on duting the year: 0. 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

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