Question
Please help with the case study question below..... I have already worked out the 6 problems in the screenshots. I put them in here to
Please help with the case study question below..... I have already worked out the 6 problems in the screenshots. I put them in here to reference for help for the case study question.
Case Study Question: Answer each question as if you were the managerial accountant for the Teledex Company and are presenting to the company president as indicated in the case study.
For each answer explain the terminology and concepts used. For example, in #1 rather than just give the predetermined overhead rate, explain the calculation - this is a professional report from a managerial accountant to the company president.
APA Format Answer
When giving a recommendation, back it up with numbers. Make sure you address the original dilemma - lost bids.
This particular answer should be managerial accounting report to the company president that is no more than 2 pages in length.
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: Manufacturing overhead Direct labor Department Fabricating Machining Assembly Total Plant $ 367,500 $ 420,000 $ 94,500 $ 882,000 $ 210,000 $ 105,000 $ 315,000 $ 630,000 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: Direct materials Direct labor Manufacturing overhead Fabricating $ 4,000 $ 4,800 ? Department Machining $ 300 $ 600 ? Assembly $ 2,400 $ 7,200 ? Total Plant $ 6,700 $12,600 ? Using the company's plantwide approach, compute the plant wide predetermined rate for the current year. Predetermined overhead 140 % of direct labor rate cost Required 1A Required 1B Required 2A Required 2B 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 $ 17,640 applied 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 175 % department Machining 400 % department Assembly 30 department of direct labor cost of direct labor cost of direct labor cost 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. Manufacturing overhead cost $ 12,960 applied 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 $ 55,410 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 rates had been used to apply overhead cost? Manufacturing overhead cost $ 48,390 applied
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