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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
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 $234,000. Each department's overhead consists primarily of depreciation and other machinerelated expenses. Selected budgeted and actual data from the St. Cloud plant for the past year are as follows. 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. --1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 19 percent to total manufacturing ce What would be the bid for job no. 110 using the overhead rate from part a? :-2. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 19 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b ? :-3. Which of the overhead allocation methods would you recommend? Answer is not complete. Complete this question by entering your answers in the tabs below. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 19 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.)
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