Suppose instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions:

1. Compute the predetermined overhead rate for each department for the current year.
2. Determine the amount of manufacturing overhead cost applied to the Kooper's job.

"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 job-order costing. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply 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 Machining Fabricating $ 367,500 $ 210,000 $ 420,000 Assembly $ 94,500 $ 105,000 $ 315,000 Total Plant $ 882,000 $ 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: Department Fabricating Machining Assembly Total Plant Direct materials $ 4,000 $ 300 $ 2,400 $ 6,700 Direct labor $ 4,800 Manufacturing overhead ? $ 600 ? $ 7,200 $ 12,600 ? ?