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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 $250,000. During the past year, actual plantwide overhead was $240,000. 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. For the coming year, the occountants 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. 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 $23,000 ? 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 $23,000 ? 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 planthas 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 $240,000. 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. 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. 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 eam on incremental profit of $23,000 ? 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 $23,000 ? e. A 5t. Cloud subcontractor has offered to produce the parts for job no. 110 for a price of $8.5 per unit. Assume the St. Cloud sales force has already committed to the bid price based on the caiculations in part b. Should the St. Cloud plant buy the $8.5 per unit part from the subcontractor or continue to make the parts for job no. 110 itself? Continue to make the part Buy part from the subcontractor

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