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 $200,000. During the past year, actual plantwide overhead was $190,000. 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 B Budgeted department overhead (excludes plantwide overhead) Actual department overhead Expected total activity: Direct labor hours. Machine-hours Actual activity: Direct labor hours. Machine-hours $ 100,000 110,000 $ 500,000 520,000 50,000 10,000 10,000 50,000 51,000 10,500 9,000 52,000 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 $20,000 Direct labor cost: Department A (2,000 hr) 30,000 Department B (500 hr) 6,000 Machine-hours projected: Department A Department B 100 Units produced 1,200 10,000 f. Would your response to part e change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $15,000? Answer is complete but not entirely correct. Incremental profit earned by producing the other job Incremental cost of buying the parts from the subcontractor Increase in total profits: $ 15,000 $ 8x $ 120,000