Answered step by step
Verified Expert Solution
Question
1 Approved Answer
two. six question in one question. please highlight your answer i get confused Blast it! said David Wilson, president of Teledex Company. We've just lost
two. six question in one question. please highlight your answer i get confused
"Blast it!" said David Wilson, president of Teledex Company. We've just lost the bid on the Koopers job by $2,000. It seem we're elther too high to get the job or too low to make any money on half the jobs we bid." Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Department Fabricating Machining Assembly Total Plant Manufacturing overhead $364,000 $ 416,00 $ 93,660 $ 873,600 Direct labor $ 200,000 $ 104,900 $ 312,800 $ 624,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Direct materials Direct labor Manufacturing overhead Fabricating $3,800 $4,400 Department Machining $ 400 $ 700 2 Assembly $2,200 $7,000 2 Total Plant $ 6,400 $12, 100 2 Required: 1. Using the company's plantwide approach: a. Compute the plantwide predetermined rate for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 2. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions: a. Compute the predetermined overhead rate for each department for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 4. Assume that it is customary in the Industry to bid Jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead), a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate? b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? Req 1A Reg 1B Req 2A Reg 2B Req 4A Req 4B Using the company's plantwide approach, compute the plantwide predetermined rate for the current year. Predetermined overhead rate % of direct labor cost Req 1A Reg 1B Req 2A Req 2B Req 4A Req 48 Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would hav applied to the Koopers job. Manufacturing overhead cost applied Req 1A Req 1B Req 2A Req 2B Req 4A Req 4B Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental pre overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department for the year. Predetermined Overhead Rate Fabricating department of direct labor cost Machining department Assembly department of direct labor cost % % of direct labor cost % Req 1A Req 1B Req 2A Req 2B Req 4A Req 4B Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predeter overhead rates based on direct labor cost. Determine the amount of manufacturing overhead cost that would have beer applied to the Koopers job. Manufacturing overhead cost applied Reg 1A Req 1B Req 2A Req 2B Req 4A Req 4B Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct la applied overhead). What was the company's bid price on the Koopers job using a plantwide predetermined overhead ra Company's bid price Req 1A Reg 1B Req 2A Reg 2B Req 4A Reg 4B Assume that it is customary in the industry to bid Jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? Manufacturing overhead cost applied Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started