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[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,
[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 $250,000. During the past year, actual plantwide overhead was $242,000. 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. Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours Machine-hours Actual activity: Direct labor hours Machine-hours Department Department B $ 97,500 120,000 $540,600 558,600 56,000 15,000 13,000 53,000 58,500 14,000 13,700 55,000 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 $21,500 Direct labor cost: Department A (2,400 hr) 36,000 Department B (800 hr)) 11,600 Machine-hours projected: Department A Department B Units produced 100 1,200 12,000 c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 23 percent to total manufacturing costs. What 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 23 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? Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 23 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Bid price CMC1 Req C2 >
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