Topic: Current Overhead Cost Allocation Methods Type: FMB 7) At Kaplan Manufacturing Company, in addition to direct materials and direct labor costs, each job is charged with a portion of company's total factory overhead costs. Currently, factory overhead cost is allocated among jobs using a plantwide rate based on machine hours. Price of a job is set on a "Cost Plus" basis: Price Cost +145% of Cost During yesterday's administrators meeting, the President of the company stated that "there is no week that goes by that I do not hear positive and negative comments from our customers about the prices that we are charging. Some of them express satisfaction with our low prices and some dissatisfaction with our non-competitive prices." One of the recently hired managers with an MBA from CSU, responded that it could be due to having "over- costing" and "under-costing" situation. The President, being given strange looks, said that our cost for each job represents the price of resources that we have used to manufacture the job. How could a job be over-costed or under-costed when the cost of job is based on the price of resources consumed for the job? You have been assigned through computing manufacturing cost of Job 102 under the three methods for the allocation of factory overhead costs to demonstrating how a company could face having over-costing and under-costing for the president of the company. Per upon your request, the following information is compiled for company and Job 102. Company data: Breakdown of company's total factory overhead of $463,320 by departments and activities. Round up your overhead rates to two decimal points. Budgeted Manufacturing overhead costs Budgeted machine hours Budgeted direct labor hours 92,650 Machining Department Assembly Department Total $370,600 $92,720 $463,320 37,350 130,000 7,640 46,360 54,000 Activity Cost Pools Overhead Costs Allocation Base # of Allocation Base Machine setups $185,380 # of setups 1,000 Purchase order Processing $37,050 purchase orders 600 Machining $143,000 machine hours 130,000 Inspection $97,890 # of inspections 1,500 $463,320 Job Data: Data regarding Job 102 Job 102 -Direct material used per materials requisition slips: $2,500 -Direct labor cost per time ticket slips: $1,200 -Machine hours used 500 hours (400 hours in Machining Dep. and 100 hours in Assembly Dep.) -Direct labor hours used: 26 hours (5 hours in Machining Dep. and 21 hours in Assembly Dep.) -Number of machine setups required: 2 -Number of materials purchase orders issued: 3 -Number of inspections: 4 Compute the followings Example of Answer: 4000 (No comma, space, decimal point, or S sign) Under current company's current plant-wide method of allocating factory overhead cost, ] and selling price would be [ the cost of Job 102 would be [ Under departmental method of allocating factory overhead cost, the cost of Job 102 would be [ selling price would be [ Under activity-based costing method of allocating factory overhead cost, the cost of Job 102 would be [ and selling price would be [ Jand