Required: 1. Using the company's plantwide approach: a. Compute the plantwlde predetermined rate for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 2. Suppose that instead of using a plantwlde predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions: a. Compute the predetermined overhead rate for each department for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopersjob. 4. Assume that it is customary in the industry to bid jobs at 15096 of total manufacturing cost (direct materials, direct labor, and applied overhead). a. What was the company's bid price on the Koopersjob using a plantwlde predetermined overhead rate? b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? \"Blast it!" said David Wilson, president of Teledex Company. \"We'vejust lost the bid on the Koopersjob by $2,000. 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' specications and uses a job-order costing system. The company uses a plantwlde 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: A Fabricating whining newly Total Plant Manufacturing overhead 3 353,500 5 404,000 5 90,900 $ 848,400 Direct labor 5 202,000 5 101,000 $ 303,000 $ 606,000 Jobs require varying amounts of work in the three departments. The Koopersjob. for example, would have required manufacturing costs in the three departments as follows: Mat. fabricating machining All-ably 100.11 Plant Direct materials $3,200 5 200 $1,600 S 5,000 Direct labor $3,200 5 500 $6,400 $10,100 Manufacturing overhead E ? ? ? l 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 predetem'ilned overhead rates had been used to apply overhead cost? Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and appiied overhead). What was the company's bid price on the Keepers job using a plantwide predetermined overhead rate? 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 Keepers job. Suppose that instead of using a piantwlde 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. Fabricating department -m of direct labor cost Machining department -m of direct labor cost Assembly department -m of direct labor cost Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Using the company's plantwlde approach, compute the plantwide predetermined rate for the current year
