Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Gilster Compary, a machine tooling firm, has several plants. One plant, located in St. Cloud, Minnesota, uses a job order costing system for its

image text in transcribed
image text in transcribed
The Gilster Compary, 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 $280,000. 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. -1. The sales policy at the St. Cloud plant dictates that job bids be calculated by adding 25 percent to total manufacturing costs. What rould 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 25 percent to total manufacturing costs. What vould be the bid for job no, 110 using the overhead rate from part b? -3. Which of the overhead allocation methods would you recommend? 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 25 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Second Custom Edition For The University Of Central Florida

Authors: Walter T. Jr, Horngren Harrison

2nd Custom Edition

0536986002, 978-0536986009

More Books

Students also viewed these Accounting questions