ielates uv ialivi y upeialivils, allu 15% ielates to seimily and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. Goods that cost $501,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Sales for the year totalled $763,000 and were all on account. (11) The total cost to manufacture these goods according to their job cost sheets was $493,000. Note : = journal entry has been entered "Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $12,000 on the Hastings job." I just can't figure it out," said Hudson. "It seems we're either too high to get the job or too low to make any money on half the jobs we bid. What's happened?" Prime Products manufactures specialized goods to customers' specifications and operates a job-order costing system. Manufacturing 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 manufacturing costs in the three departments as follows: 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. Journal entrv worksheet Note: Enter debits before credits. b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. D. 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 materials, direct labour, and ap overhead). 4. 150% 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 jobs 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. Raw materials were purchased on account: $209,000. Raw materials were requisitioned for use in production: $199,000 (80\% direct and 20% indirect). Record the costs that were incurred for employee services. Heat, power, and water costs were incurred in the factory: $43,800. Prepaid insurance expired during the year: $11,800 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). Note : = journal entry has been entered Prepaid insurance expired during the year: $11,800 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). Advertising costs were incurred, $51,800. Depreciation was recorded for the year: $61,200 (85\% relates to factory operations, and 15% relates to selling and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. Goods that cost $501,600 to manufacture according to their iob cost sheets were transferred to the finished ielates uv ialivi y upeialivils, allu 15% ielates to seimily and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. Goods that cost $501,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. Sales for the year totalled $763,000 and were all on account. (11) The total cost to manufacture these goods according to their job cost sheets was $493,000. Note : = journal entry has been entered "Don't tell me we've lost another bid!" exclaimed Janice Hudson, president of Prime Products Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $12,000 on the Hastings job." I just can't figure it out," said Hudson. "It seems we're either too high to get the job or too low to make any money on half the jobs we bid. What's happened?" Prime Products manufactures specialized goods to customers' specifications and operates a job-order costing system. Manufacturing 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 manufacturing costs in the three departments as follows: 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. Journal entrv worksheet Note: Enter debits before credits. b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. D. 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 materials, direct labour, and ap overhead). 4. 150% 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 jobs 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. Raw materials were purchased on account: $209,000. Raw materials were requisitioned for use in production: $199,000 (80\% direct and 20% indirect). Record the costs that were incurred for employee services. Heat, power, and water costs were incurred in the factory: $43,800. Prepaid insurance expired during the year: $11,800 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). Note : = journal entry has been entered Prepaid insurance expired during the year: $11,800 ( 90% relates to factory operations, and 10% relates to selling and administrative activities). Advertising costs were incurred, $51,800. Depreciation was recorded for the year: $61,200 (85\% relates to factory operations, and 15% relates to selling and administrative activities). Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. Goods that cost $501,600 to manufacture according to their iob cost sheets were transferred to the finished