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*** Please open image in new file to see it all. Thanks! :) Blast it! said David Wilson, president of Teledex Company. We've just lost
*** Please open image in new file to see it all. Thanks! :)
"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $9,900. 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 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: |
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: The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Requirement 1: Assuming the use of a plantwide overhead rate: a. Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the % sign in your response.) Predetermined overhead rate % of direct labor cost b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. (Round your answer to the nearest dollar amount. Omit the S sign in your response.) Manufacturing overhead cost
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