Man door mensen locator Sinprogress false Plantwide Overhead Rate versus Departmental Rates, facts on Priang Decisions Cherise Ortega, marketing manager for Romer Company was pued by the outcome of two recent . The company's policy was to bid 150 percent of the il manufacturing cost. One jobb ed 7-28) had been tumed down by a prospective customer, who had indicated that the proposed price was $3 per ther than the winning bid. A second job () 97-35) had been accepted by a customer, who was amazed that Romer could offer such favorable term This customer revealed that Romer's price was 43 por un lower than the next lowest bid Chere has been informed that the company was more than competitive in terms of cost control. Accordingly, she began to suspect that the problem was related to cost assignment procedures. Upon investigating Cherise was told that the company uses a plant de overhead rate based on direct labor hours. The rate is computed at the beginning of the year using budgeted data Selected budgeted data are given below Department Department Total Overhead 5500,000 $2,000,000 $2,500,000 Direct labor hours 200,000 50.000 250.000 Machine hours 20,000 125.000 145,000 Cherishe discovered that the head costs Departments were higher than the Department Abuse has more equipment, higher maintenance her power consumption deprecation, and in action to the general procedures for a goverheads Chess ed with the inspector 2 97-35 Department Department Total Direct bor hours. 5,000 Job 97-28 Department Department Total Direct labor hours 5,000 6,000 Machine Hours 200 600 1,000 400 $20,000 14,400 Prime costs $120,000 $100,000 14,400 Units produced 14,400 Job 97-35 Department Department B Total Direct labor hours 500 500 1.100 Machine hours 200 3,200 Prime costs 3,000 $30,000 1,500 $10,000 1,500 540,000 Units produced 1,500 Required: 1. Using a plantwide overhead rate based on direct sbor hours, develop the bid prices for Jobs 97-28 and 97-35 (express the bid prices on a per-unit basis). If required, round your answers to the nearest cent. Unit bid price Job 97-28 Required: bor ho o p the prices for and express the 1. Una de verhad donor If required, round your answers to the nearest Gent United price 97-20 2. ang departm 9.2 and 97-35. e n ts (use director hours for Department A and machine hours for Department ), developper unit bid prices for jobs qurd round intermecata comu ns and final to the nearest Unit bid price -35 3. Compute the r es p ot that we have been med had the company used departmental rates in its end of the plantierte Emaior er Man door mensen locator Sinprogress false Plantwide Overhead Rate versus Departmental Rates, facts on Priang Decisions Cherise Ortega, marketing manager for Romer Company was pued by the outcome of two recent . The company's policy was to bid 150 percent of the il manufacturing cost. One jobb ed 7-28) had been tumed down by a prospective customer, who had indicated that the proposed price was $3 per ther than the winning bid. A second job () 97-35) had been accepted by a customer, who was amazed that Romer could offer such favorable term This customer revealed that Romer's price was 43 por un lower than the next lowest bid Chere has been informed that the company was more than competitive in terms of cost control. Accordingly, she began to suspect that the problem was related to cost assignment procedures. Upon investigating Cherise was told that the company uses a plant de overhead rate based on direct labor hours. The rate is computed at the beginning of the year using budgeted data Selected budgeted data are given below Department Department Total Overhead 5500,000 $2,000,000 $2,500,000 Direct labor hours 200,000 50.000 250.000 Machine hours 20,000 125.000 145,000 Cherishe discovered that the head costs Departments were higher than the Department Abuse has more equipment, higher maintenance her power consumption deprecation, and in action to the general procedures for a goverheads Chess ed with the inspector 2 97-35 Department Department Total Direct bor hours. 5,000 Job 97-28 Department Department Total Direct labor hours 5,000 6,000 Machine Hours 200 600 1,000 400 $20,000 14,400 Prime costs $120,000 $100,000 14,400 Units produced 14,400 Job 97-35 Department Department B Total Direct labor hours 500 500 1.100 Machine hours 200 3,200 Prime costs 3,000 $30,000 1,500 $10,000 1,500 540,000 Units produced 1,500 Required: 1. Using a plantwide overhead rate based on direct sbor hours, develop the bid prices for Jobs 97-28 and 97-35 (express the bid prices on a per-unit basis). If required, round your answers to the nearest cent. Unit bid price Job 97-28 Required: bor ho o p the prices for and express the 1. Una de verhad donor If required, round your answers to the nearest Gent United price 97-20 2. ang departm 9.2 and 97-35. e n ts (use director hours for Department A and machine hours for Department ), developper unit bid prices for jobs qurd round intermecata comu ns and final to the nearest Unit bid price -35 3. Compute the r es p ot that we have been med had the company used departmental rates in its end of the plantierte Emaior er