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Don't tell me we've lost another bid exclaimed Janice Hudson, president of Prime Products inc Tm afrald so, isplied Doug Martin, Prime Products manufactures specialized

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"Don't tell me we've lost another bid" exclaimed Janice Hudson, president of Prime Products inc "Tm afrald so," isplied Doug Martin, Prime Products manufactures specialized goods to customers' specifications and operates a job-order cosing systrm. Manufacturins 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 manufacturi costs in the three departments as follows: The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Required: 1. Assuming the use of a plantwide overhead rate: a. Compute the rate for the current year. 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 compary had used a separate predetermined overhead tate in ench department. Under these conditions: a. Compute the rate for each department for the curtent year. Determine the amount of manufacturing overhead 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 bid jobs at 150% of total manufacturing cost (direct materiais, durect labour, and applied overhead). a. What was the company's bid price on the Hastings job? 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 lobs worked on during the year 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

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