"Blast it!" sald David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers Job by $2,000. It seems we'reelther too high to get the Job or too low to make any money on half the Jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating Machining$ 358,750 $ 410, e00$ 102,500Assembly92, 250$ 307,500 STotal PlantManufacturing overheadDirect labor861,e0e615, eee24205,000Jobs require varying amounts of work In the three departments. The Koopers Job, for example, would have requlred manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 500Assembly$1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred: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 predeterminedoverhead 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 materlals, direct labor, and appliedoverhead).a. What was the company's bld 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?Complete this question by entering your answers in the tabs below.Required 1ARequired 1BRequired 2ARequired 28Required 4ARequired 48Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, andapplied overhead). What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?Company's bid price "Blast it!" sald David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers Job by $2,000. It seems we'reeither too high to get the Job or too low to make any money on half the jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year:DepartmentMachining$ 410,000$ 102,500AssemblyFabricating$ 358,75024Total PlantManufacturing overheadDirect labor861,eee615, e0092,250205,000$ 307,500Jobs require varylng amounts of work In the three departments. The Koopers Job, for example, would have required manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 500Assembly$ 1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequired: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 Jjob.2. Suppose that Instead of using a plantwide predetermined overhead rate, the company had used departmental predeterminedoverhead 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 applieoverhead).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?Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2A Required 28 Required 4ARequired 48Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, andapplied overhead). What would the bid price have been if departmental predetermined overhead rates had been used to applyoverhead cost?Manufacturing overhead cost applied

Question

"Blast it!" sald David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers Job by $2,000. It seems we'reelther too high to get the Job or too low to make any money on half the Jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating Machining$ 358,750 $ 410, e00$ 102,500Assembly92, 250$ 307,500 STotal PlantManufacturing overheadDirect labor861,e0e615, eee24205,000Jobs require varying amounts of work In the three departments. The Koopers Job, for example, would have requlred manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 500Assembly$1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred: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 predeterminedoverhead 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 materlals, direct labor, and appliedoverhead).a. What was the company's bld 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?Complete this question by entering your answers in the tabs below.Required 1ARequired 1BRequired 2ARequired 28Required 4ARequired 48Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, andapplied overhead). What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?Company's bid price< Required 2BRequired 4B > "Blast it!" sald David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers Job by $2,000. It seems we'reeither too high to get the Job or too low to make any money on half the jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year:DepartmentMachining$ 410,000$ 102,500AssemblyFabricating$ 358,75024Total PlantManufacturing overheadDirect labor861,eee615, e0092,250205,000$ 307,500Jobs require varylng amounts of work In the three departments. The Koopers Job, for example, would have required manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 500Assembly$ 1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequired: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 Jjob.2. Suppose that Instead of using a plantwide predetermined overhead rate, the company had used departmental predeterminedoverhead 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 applieoverhead).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?Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2A Required 28 Required 4ARequired 48Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, andapplied overhead). What would the bid price have been if departmental predetermined overhead rates had been used to applyoverhead cost?Manufacturing overhead cost applied< Required 4ARequired 4B >

Accepted Answer

1.
a.

Estimated manufacturing overhead cost (a)
$861,000

Estimated direct labour cost (b)…