90.2K

Verified Solution

Link Copied!

Please signify the answers clearly.

Chapter 03 Problems Question 5 (of 5) 30.00 points Blas said David Wilson, president of Teledex Company. We've just lost the bid on the Koopers job we're either too high to get the job or too low to make any money on half the jobs we bid by $4,000. It seems 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: $204.000 S102.000 S306.000 612.000 5357.000 408.000 S 91.800 856.800 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 Manfacturing overhead 3.400 300 S 1.800 5.500 S 3,000600 6,600 10,800 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Required 1 Assuming use of a plantwide overhead rate Compute the rate for the current year b Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. Chapter 03 Problems Question 5 (of 5) 30.00 points Blas said David Wilson, president of Teledex Company. We've just lost the bid on the Koopers job we're either too high to get the job or too low to make any money on half the jobs we bid by $4,000. It seems 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: $204.000 S102.000 S306.000 612.000 5357.000 408.000 S 91.800 856.800 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 Manfacturing overhead 3.400 300 S 1.800 5.500 S 3,000600 6,600 10,800 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Required 1 Assuming use of a plantwide overhead rate Compute the rate for the current year b Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job

Answer & Explanation Solved by verified expert

See Answer