Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i always rate so please submit all parts! thanks in advance Blast it said David Wilson, president of Teledex Company, We've just lost the bid
i always rate so please submit all parts! thanks in advance
"Blast it" said David Wilson, president of Teledex Company, "We've just lost the bid on the Koopers job by $4,000, 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 uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year Department Fabricating Machining Assembly Total Plant Manufacturing overhead $ 378,000 5 432,eee $ 97,280 $ 907,200 Direct labor $ 216,000 $ 108,00 $ 324,000 $ 648,000 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 $4,600 $ 200 $ 6,000 $ 500 ? Assembly Total Plant $ 3,00 $ 7,800 $ 7.50 $ 14,300 Direct materials Direct labor Manufacturing overhead Required: 1 Using the company's plantwide approach a. Compute the plantwide predetermined rate for the current year b. Determine the amount of manufacturing 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 if departmental predetermined overhead rates had been used to apply overhead cost? Required 1A Required 15 Required 2A Required 28 Required 4A Required 48 Using the company's plantwide approach, compute the plantwide predetermined rate for the current year Predetermined overhead rato % of direct labor cost Roziti Required 18 > Required 1A Required 18 Required 2A Required 28 Required 4A Required 4B Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Manufacturing overhead cost applied Required 1A Required 15 Required 2A Required 28 Required 4A Required 43 Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department for the current year Predetermined Overhead Rate Fabricating department % of direct labor cost Machining department 96 of direct labor cost Assembly department of direct labor cost Required 1A Required 18 Required 2A Required 28 Required 4A Required 45 Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Marutacturinovatoad oot applied Required 2A Required 4A > Required 1A Required 18 Required 2A Required 20 Required 4A Required 45 Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate? Company's bid price Required 1A Required 18 Required 2A Required 28 Required 4A Requiredila Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). What would the bid price have been if departmental predetermined overhead raten had been used to apply overhead cost? Montcug overhad contpplied Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started