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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

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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 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 $300,000. During the past year, actual plantwide overhead was $288,000. 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 Department Budgeted department overhead (excludes plantwide overhead) $ 159,600 $ 552,000 Actual department overhead 120,000 572,000 Expected total activity: Direct labor hours 36,000 20,000 Machine-hours 19,00 46,080 Actual activity: Direct Labor hours 38,000 18,500 Machine-hours 19,888 48,000 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 $24,580 42.000 13,200 Direct materials Direct Labor cost: Department A (2,890 hr) Department B (1,500 hr) Machine-hours projected: Department A Department B Units produced 160 1,200 8,000 ,11 13,200 Machine-hours projected: Department A Department B Units produced 160 1,200 8,000 Assume the St. Cloud plant uses three separate overhead rates to assign overhead costs to jobs. b-1. Find the plant wide overhead rate by usingy xpected machine hours. b-2. Find the department overhead rate using expected machine hours for Department A and Department B. b-3. Calculate the projected manufacturing costs per unit for job 110 using the three separate rates computed in b-1 and 1-2. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Reg B3 Find the plant wide overhead rate by using expected machine hours. (Round your answer to 2 decimal places.) Plantwide overhead rate per machine hour Req B2 > c-1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 29 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 29 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. Reg I Reg C2 Reg C3 The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 29 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.) Bad pnce Reg C2 > Department A Department B Units produced 160 1,200 8,000 Compute the under-or overapplied overhead for the St. Cloud plant for the year. (Round your intermediate can ecimal places.) Overapplied f. Would your response to parte change if the St. Cloud plant could use the facilities necessary to produce parts for job another job that could earn an incremental profit of $27,000? Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractor Increase in total profits

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