Lenko 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 labor cost. The following estimates were made at the beginning of the year:

	Department
	Cutting				Machining				Assembly				Total Plant
Direct labor	$	319,000			$	218,000			$	404,000			$	941,000
Manufacturing overhead	$	521,000			$	976,880			$	83,000			$	1,580,880

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:

	Department
	Cutting				Machining				Assembly				Total Plant
Direct materials	$	12,100			$	1,000			$	5,700			$	18,800
Direct labor	$	6,600			$	1,700			$	13,000			$	21,300
Manufacturing overhead		?				?				?				?

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.

I got 168%

b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job.

I got 35,768

2. Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

a.Compute the rate for each department for the current year.(Round predetermined overhead percentages to the nearest whole percent.)

I got cutting dept 163% , machining 448% and assembly department 21%

I need help with the following:

b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. (Round your predetermined overhead percentages to the nearest whole percent.)

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 Hastings job if the plantwide overhead rate had been used to apply overhead cost?

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:

	Department
	Cutting				Machining				Assembly				Total Plant
Direct materials	$	761,000			$	89,000			$	410,000			$	1,260,000
Direct labor	$	318,000			$	209,000			$	341,000			$	868,000
Manufacturing overhead	$	561,000			$	831,000			$	93,000			$	1,485,000

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.