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I already have most of the answers, just need help on what remains: Blast it! said David Wilson, president of Teledex Company. We've just lost
I already have most of the answers, just need help on what remains:
"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $2,000. It seems we're either 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 operates a joborder costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year: Department Fabricating Machining Assembly Total Plant Direct labor 200,000 100,000 300,000 600,000 Manufacturing overhead 350,000 $400,000 90,000 840,000 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: Department Fabricating Machining Assembly Total Plant 3,000 200 1,400 4,600 Direct materials 2,800 500 6,200 9,500 Direct labor Manufacturing overhead The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs
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