Hi

Please see attached I finished the first part but the next two parts I have not completed, Please send answer in excel file.

Preparing the initial bid estimate Instructions: Use the tabs above to navigate back and forth between steps. Understand the role support department cost allocation has in Objecti determining departmental overhead rates and the resulting ve: overhead costs that flow to the job order cost sheet. - Click here to refer to the question information. Briggs Precision is a small firm that manufactures precision parts, promising consistency and high accuracy with tolerances to .0005. Briggs operates two production departments: a CNC Machining Center and a Finishing Department. The machining department uses computer numerical control (CNC) machines that design and manufacture parts according to desired specification and precision. Human operators manage the equipment and move the parts from machine to machine. In the Finishing Department, finishes and coatings (such as electroplating, anodizing, and nickel and zinc plating) are applied to increase corrosion and wear resistance of metal parts. Over time, Briggs has developed a good reputation for excellence. Briggs operates a job costing system for accounting purposes. Two support departments are used to provide needed services for the machining and finishing departments. Budgeted annual data pertaining to the overhead for the various departments is given below: Maintena Machini Finishi Power nce ng ng $400,0 $400,00 $200,0 Fixed $300,000 00 0 00 270,00 200,00 Variable 130,000 300,000 0 0 $670,0 $700,00 $400,0 Total $430,000 00 0 00 5,000,00 1,000,0 KWH 4,000,000 0 00 Maintenance hours 2,000 2,000 6,000 Machine hours (practical 100,00 50,000 volume) 0 During the first month of the fiscal year, a potential customer from a nearby geographical region not normally serviced by Briggs, approached the company and asked Briggs to bid on a job that would consist of 750 specially designed parts for a small aircraft engine. The potential customer indicated that they had already received a bid of $101 per part from another firm but that if Briggs could beat the price, the job would be theirs. Barry Norton, owner and manager of Briggs, was interested but was not certain if the bid could be won as the part specifications required precision machining. Connie Baker, the firm's controller was asked to prepare the initial bid to see if Briggs could be competitive. After consulting with the production managers of the two departments Connie estimated that the cost of direct materials and direct labor would be $28,000 and $6,000 respectively. She was confident that overhead would be the determining factor. Briggs uses departmental rates based on machine hours. Connie uses the direct method to assign costs of support departments to the producing departments. She estimates that the job (Job 725) would use 1,000 and 500 machine hours in Machining and Finishing, respectively. Required: Using the direct method, determine the budgeted overhead costs for a Machining and Finishing. (Round allocation ratios to six decimal places and . costs assigned to the nearest dollar. Use your rounded values in subsequent requirements.) Machining: $ Budgeted variable 557500 Item1 overhead Budgeted fixed overhead Total Finishing: Budgeted variable overhead Item2 1365833 Item3 342500 Item4 491667 Item5 834167 Item6 $ $ Budgeted fixed overhead Total 808333 $ Calculate the variable and fixed overhead rates for each department. b (Round rates to the nearest cent. Use your rounded values in subsequent . requirements.) per machine hour Machining: Variable overhead rate $ Fixed overhead rate Total overhead rate Finishing: Variable overhead rate 11.15 Item7 16.17 Item8 27.32 Item9 3.43 Item10 4.92 Item11 8.35 Item12 $ $ Fixed overhead rate $ Total overhead rate Prepare a simplified job sheet for Job 725. (Round overhead costs assigned c to the nearest dollar. Use your rounded values in subsequent . requirements.) Job 725 $ 28000 DM Item13 DL 6000 Item14 VOH 12865 Item15 FOH 18630 Item16 $ Job Cost 65495 Item17 Briggs uses cost plus 20% for bids. Calculate the per unit bid price for Job d 725. (Round to the nearest cent. Use your rounded values in subsequent . steps.) Unit Price $ THIS PART I HAVE WRONG 87.90 Item18 Summary Questions: 1In assigning support department costs to the producing departments, the direct method ignores support department interactions . . Item19 Jobs are assigned overhead by 2 . multiplying the departmental rates by the amount of driver consumed in each department and then summing . Item20 THIS PART I HAVE WRONG; BELOW PLEASE ANSWER QUESTION ON THE ACTUAL BOX. THANK YOU. To appreciate (1) the fact that methods of allocating support department costs can produce significantly different departmental Objectiv overhead rates, and (2) if significant differences do exist, then the es: method that most completely reflects consumption of services should be used so that the cost of a job and the associated bid are better specified. - Click here to refer to the question information. Briggs Precision is a small firm that manufactures precision parts, promising consistency and high accuracy with tolerances to .0005. Briggs operates two production departments: a CNC Machining Center and a Finishing Department. The machining department uses computer numerical control (CNC) machines that design and manufacture parts according to desired specification and precision. Human operators manage the equipment and move the parts from machine to machine. In the Finishing Department, finishes and coatings (such as electroplating, anodizing, and nickel and zinc plating) are applied to increase corrosion and wear resistance of metal parts. Over time, Briggs has developed a good reputation for excellence. Briggs operates a job costing system for accounting purposes. Two support departments are used to provide needed services for the machining and finishing departments. Budgeted annual data pertaining to the overhead for the various departments is given below: Maintena Machini Finishi Power nce ng ng $400,0 $400,00 $200,0 Fixed $300,000 00 0 00 Variable 270,00 130,000 300,000 200,00 0 $670,0 $430,000 00 0 $700,00 $400,0 Total 0 00 5,000,00 1,000,0 KWH 4,000,000 0 00 Maintenance hours 2,000 2,000 6,000 Machine hours (practical 100,00 50,000 volume) 0 During the first month of the fiscal year, a potential customer from a nearby geographical region not normally serviced by Briggs, approached the company and asked Briggs to bid on a job that would consist of 750 specially designed parts for a small aircraft engine. The potential customer indicated that they had already received a bid of $101 per part from another firm but that if Briggs could beat the price, the job would be theirs. Barry Norton, owner and manager of Briggs, was interested but was not certain if the bid could be won as the part specifications required precision machining. Connie Baker, the firm's controller was asked to prepare the initial bid to see if Briggs could be competitive. After consulting with the production managers of the two departments Connie estimated that the cost of direct materials and direct labor would be $28,000 and $6,000 respectively. She was confident that overhead would be the determining factor. Briggs uses departmental rates based on machine hours. Connie uses the direct method to assign costs of support departments to the producing departments. She estimates that the job (Job 725) would use 1,000 and 500 machine hours in Machining and Finishing, respectively. Upon reviewing the initial bid, Barry was somewhat disappointed but, at the same time, not totally discouraged because the bid was within a few dollars of the $100 target price. Since overhead was more than 50 percent of the job cost, Barry approached Connie and asked if there was some possibility that the overhead assigned was not totally reflective of the resources being consumed by the job. Connie's response was intriguing. She indicated that a better way exists of assigning support department overhead to the producing department-one that fully considers all interactions of the support departments and which might make some difference depending on the way the support departments interact and the resource consumption pattern of the job itself. Required: The method takes into account all - Select your answer Item1 a . interactions of the support departments before allocating costs to the producing departments. Use the method of allocation that fully considers support department interactions to assign support department costs to the producing b departments. Round allocation ratios to three decimals and the costs . allocated to the nearest dollar. Use a single charging rate (assign total support costs--no need to distinguish between fixed and variable costs). (Use your rounded values in subsequent requirements.) Machining department: $ Total budgeted overhead Item2 Finishing department: $ Total budgeted overhead: Item3 Calculate the departmental overhead rates that reflect full interaction of support departments (Round to the nearest cent. Use your rounded values c in subsequent requirements.). Allocate the total support overhead of each . support department using you chosen method. Only the total overhead rate needs to be calculated. Machinin g: Finishing : $ per machine Item4 hour per machine $ Item5 hour Using the new departmental rates plus 20%, recalculate the unit bid price d for Job 725 (Round to the nearest cent. Use your rounded values in . subsequent requirements.): Unit Price: $ Item6 Summary Questions: 1 The new unit bid price using the . Preparing a third bid based on increased efficiency Instructions: Use the tabs above to navigate back and forth between steps. Understand (1) the effects increasing efficiency has on Objecti competitiveness and (2) how the change in efficiency affects the ve: cost structure of a support department. - Click here to refer to the question information. Briggs Precision is a small firm that manufactures precision parts, promising consistency and high accuracy with tolerances to .0005. Briggs operates two production departments: a CNC Machining Center and a Finishing Department. The machining department uses computer numerical control (CNC) machines that design and manufacture parts according to desired specification and precision. Human operators manage the equipment and move the parts from machine to machine. In the Finishing Department, finishes and coatings (such as electroplating, anodizing, and nickel and zinc plating) are applied to increase corrosion and wear resistance of metal parts. Over time, Briggs has developed a good reputation for excellence. Briggs operates a job costing system for accounting purposes. Two support departments are used to provide needed services for the machining and finishing departments. Budgeted annual data pertaining to the overhead for the various departments is given below: Maintena Machini Finishi Power nce ng ng $400,0 $400,00 $200,0 Fixed $300,000 00 0 00 270,00 200,00 Variable 130,000 300,000 0 0 $670,0 $700,00 $400,0 Total $430,000 00 0 00 5,000,00 1,000,0 KWH 4,000,000 0 00 Maintenance hours 2,000 2,000 6,000 Machine hours (practical 50,000 100,00 volume) 0 During the first month of the fiscal year, a potential customer from a nearby geographical region not normally serviced by Briggs, approached the company and asked Briggs to bid on a job that would consist of 750 specially designed parts for a small aircraft engine. The potential customer indicated that they had already received a bid of $101 per part from another firm but that if Briggs could beat the price, the job would be theirs. Barry Norton, owner and manager of Briggs, was interested but was not certain if the bid could be won as the part specifications required precision machining. Connie Baker, the firm's controller was asked to prepare the initial bid to see if Briggs could be competitive. After consulting with the production managers of the two departments Connie estimated that the cost of direct materials and direct labor would be $28,000 and $6,000 respectively. She was confident that overhead would be the determining factor. Briggs uses departmental rates based on machine hours. Connie uses the direct method to assign costs of support departments to the producing departments. She estimates that the job (Job 725) would use 1,000 and 500 machine hours in Machining and Finishing, respectively. Once understood, Barry was pleased with the idea of accepting Job 725. This feeling was reinforced when the customer indicated that there would likely be additionalbusiness coming. However, it also raised some concerns about possible expectations of lower prices than what Briggs would like to offer. Fortunately, Barry had been considering a way to decrease overhead costs. Recently, the local power company had met with Barry and offered to meet their power needs for $0.05 per kilowatt hour. At first glance this seemed to be cheaper than what it was costing to produce its own power. However, the managing engineer of the power department pointed out that some of the costs are sunk and not relevant to the decision as to whether to produce power internally or buy it from an external supplier. Connie Baker agreed with engineering's assessment that some costs are not relevant to the decision. The generators were purchased years ago and their costs have been incurred and are not avoidable. The fixed costs in the power department totaling $400,000 have $250,000 of depreciation on the generators. The remaining $150,000 represents the salaries of the supervising engineer and an engineering technician. She also pointed out that there are costs caused by the power department in the maintenance department that also must be considered. The interactions between the two support departments must be considered. Maintenance uses some of the power to service the power department. Maintenance has five technicians, each providing 2,000 hours of maintenance to other departments, including power. Each technician earns $45,000. The remaining maintenance fixed costs are for supervision and depreciation. Of course, variable maintenance costs are affected by changes in maintenance's output. If power is purchased externally, the generators will be sold and the net proceeds of $200,000 will be invested and earn 10 percent per year in perpetuity. Suppose that the power department is eliminated in favor of purchasing power externally ($.05 per kilowatt hour) because purchasing is less costly than producing internally. Assume that total maintenance costs are now $520,000, including the purchase of power for the maintenance activity. The power cost for maintenance includes an annual surcharge of $1,000 because of a special metering arrangement made with the power company. a Calculate a new bid price for Job 725 (round departmental rates and bid . price to the nearest cent). Bid price: $ per unit Item1 b Calculate the cost of power acquisition for the maintenance department . Power cost for maintenance department: $ Item2 Summary Questions: By increasing efficiency through the use of a cheaper input, the bid price is than the best competitor price by $ 1 - Select your answer Item3 . (Round your dollar value answers to the nearest cent.) Item4 The reduction in direct maintenance costs (fixed and variable) because of 2 eliminating the power department totals $ . . Item5 : The current direct cost of maintenance - Select your answer - Item6 ($520,000) is the original direct costs less the savings from no longer having to service the power department plus the direct costs of outside power acquisition