"Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc. $"$I$\text{'}$m afraid so$,"$ replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $$12,000$ on the Hastings job." "I just can't figure it out," said 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 require varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing costs in the three departments as follows: The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Required: Assuming the use of a plantwide overhead rate:"Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc. $"$I$\text{'}$m afraid so$,"$ replied Doug Martin,

the operations vice president. "One of our competitors underbid us by about $$13,000$ on the Hastings job." "I just can't figure it out,"

said 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 require varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing

costs in the three departments as follows:"Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc. $"$l$\text{'}$m afraid so$,"$ replied Doug

the operations vice president. "One of our competitors underbid us by about $$13,000$ on the Hastings job." "I just can't figure it

said 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 happe

Prime Products manufactures specialized goods to customers' specifications and operates a job$-$order costing system. Manufac

overhead cost is applied to jobs on the basis of direct labour cost. The following estimates were made at the beginning of the $y$

Jobs require varying amounts of work in the three departments. The Hastings job, for example, would have required manufactu

costs in the three departments as follows:

At the end of the year, the company assembled the following actua$/$ cost data relating to all jobs worked on during the year:

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

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

Cutting

Machining

Assembly