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Ellast ar said David Wilson, president of Teledex Company. 'We ve just lost the bid on the Koopers job by $3.000. It seems we're ther

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"Ellast ar said David Wilson, president of Teledex Company. 'We ve just lost the bid on the Koopers job by $3.000. It seems we're ther too high to get the job or too low to make any money on half the jobs we bid" Teledex Company manufactures products to customers' specifications and uses a job order costing system. The companyes plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead assumed to be led to jobs. The following estimates were made at the beginning of the year Departe Fingechining Aly Total Fiat Manufacturing overhead 111,000 $426,000 13.00 50,400 Director $12.00 5 100.000 1.000 3 610,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example would have required manufacturing costs in the three departments as follows Departe Fabricati Machining Arsen Total Direct materials 14,200 10 52.610 5.7.100 Direct lahor 15,200 $ 7,400 + 11,400 Manufacturing overhead Required: 1 Using the company's plantwide approach a Compute the plantwide predetermined rate for the current year Determine the amount of mariufacturing overhead cost that would have been applied to the Koopers job 2 Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions a. Compute the predetermined overhead rate for each department for the current year b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job 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 Koopers job using a plantwide predetermined overhead rate? b What would the bid price have been it departmental predetermined overhead rates had been used to apoly overhead cost Complete this question by entering your answers in the tabs below. squired A Required 10 Required 2A Required 28 Required Required 41 Uoing the company's plantwide approach, compute the plantwide predetermined rate for the current year. Manufacturing overhead Direct labor Fabricating $ 371,000 $ 212,000 Department Machining $ 424,800 $ 106,000 Assembly $ 95,480 $ 318,000 Total Plant $ 890,400 $636,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Direct materials Direct labor Manufacturing overhead Fabricating $ 4,200 $ 5,200 ? Department Machining $ 580 $ 800 ? Assembly $ 2,600 $ 7,400 ? Total Plant $ 7,300 $ 13,400

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