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Teledex Company. (Job Order Costing. Plantwide versus Departmental Overhead Rates; Underapplied or Overapplied Overhead) Blast it! said David Wilson, president of Teledex Company. We've just

Teledex Company. (Job Order Costing. Plantwide versus Departmental Overhead Rates; Underapplied or Overapplied Overhead) "Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by P2,000. 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 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.

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Department Fabricating Machining Assembly Total Direct Labor P 200,000 P 100,000 P 300,000 600,000 Manufacturing Overhead P 350,000 p 400,000 P 90,000 P 840,000Department Fabricating Machining Assembly Total Direct Materials P 3,000 P 200 P 1,400 P 4,600 Direct Labor P 2,800 P 500 P 6,200 P 9,500 Manufacturing Overhead ? ? ? ? Department Fabricating Machining Assembly Total Direct Materials P 190,000 P 16,000 P 114,000 320,000 Direct Labor 210,000 108,000 262,000 580,000 Manufacturing Overhead P 360,000 P 420,000 P 84,000 P 864,000

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