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Required Information [The following Information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant. located in

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Required Information [The following Information applies to the questions displayed below.] The Gilster Company, a machine tooling firm, has several plants. One plant. located in St. Cloud, Minnesota, uses a job order costing system for its batch production processes. The St. Cloud plant has two departments through which most Jobs pass. Plant-wide overhead, which Includes the plant manager's salary, accounting personnel. cafeteria, and human resources, Is budgeted at $200,000. During the past year, actual plantwide overhead was $187,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. Department A Department B Budgeted department overhead (excludes plantwide overhead) 144,060 405,900 Actual department overhead 168,090 420,606 Expected total activity: Direct labor hours 40,090 16,606 Machine-hours 16,006 45, 060 Actual activity: Direct labor hours 41,600 8,406 Machine-hours 16,506 47,606 For the coming year, the accountants at the St. Cloud plant are in the process of helping the sales force create bids for several Jobs. Projected data pertaining only to job no. 110 are as follows. Direct materials $17, 500 Direct labor cost: Department A ( 2, 209 hir) 33, 080 Department B ( 506 hr) 12 090 Machine-hours projected: Department A 160 Department B 1 206 Units produced 12,600 c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 28 percent to total manufactur would be the bid for job no. 110 using the overhead rate from part a?| c-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 28 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? c-3. Which of the overhead allocation methods would you recommend?

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