"Blaster said David Wilson, president of Teledex Company, "We've just lost the bid on the...
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Accounting
"Blaster said David Wilson, president of Teledex Company, "We've just lost the bid on the Koopers job by $2.000. It seems were 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 operates a job order costing system Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year Department Direct labor Manufacturing overhead Fabricating Machining Assembly Total Plant s 205,000 102.500307,500 S358,750 S 410.000 92.250 S 861.000 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 Department Direct materials Direct labor Manufacturing overhead Fabricating Machining Assembly Plans $ 3,500 $ 200 $1,900 $ 5,600 $ 3,800 $500 $ 6700$ 11,000 ? ? b. Denemine the amount of manufacturing overhead cost that would have been applied the Koopers job Nanding was 2. Suppose instead of using a planwide overhead to the company had used a separate predetermined overhead in each department. Under these conditions a. Compute the rate for each department for the current your Naching
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