- Blast It Said David Wilson President Of Teledex Company We Ve Just Lost The Bid On The Koopers Job By 2 000 It S 1 (72.74 KiB) Viewed 28 times
- Blast It Said David Wilson President Of Teledex Company We Ve Just Lost The Bid On The Koopers Job By 2 000 It S 2 (24.38 KiB) Viewed 28 times
- Blast It Said David Wilson President Of Teledex Company We Ve Just Lost The Bid On The Koopers Job By 2 000 It S 3 (20.59 KiB) Viewed 28 times
"Blast it!" said David Wilson, president of Teledex
Company. "We've just lost the bid on the Koopers job by $2,000. It seems we're either 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 Machining: $400,000 Fabricating $ 350,000 $ 200,000 Manufacturing overhead Direct labor Assembly $ 90,000 Total Plant $840,000 $ 100,000 $ 300,000 $ 600,000 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: Fabricating $ 3,000 Department Machining $ 200 Direct materials Assembly $1,400 Total Plant $4,600 $ 9,500 Direct labor $ 2,800 $ 500 $ 6,200 Manufacturing overhead 7 ? 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? Complete this
question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Required 4A Required 48 Using the
company's plantwide approach, compute the plantwide predetermined rate for the current year.
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. 1 Required 1A Required 18 Required 2A Required 28 Required 4A Required 48 Using the
company's plantwide approach, applied to the Koopers job. determine the amount of manufacturing overhead cost that would have been Manufacturing overhead cost applied < Required 1A Required 2A >
int inces Required 1A. Required 18 Required 2A Required 28 Required 4A Required 48 Suppose that instead of using a plantwide predetermined overhead rate, the
company had used departmental predetermined overhead rates based on direct labor cost. Compute the predetermined overhead rate for each department for the current year. Predetermined Overhead Rate Fabricating department % of direct labor cost Machining department % of direct labor cost Assembly department % of direct labor cost < Required 1B Required 28 >