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Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, estimates total manufacturing overhead to be . The company's managers are not sure if direct labor hours (estimated to be ) or machine hours (estimated to be hours) is the best allocation base to use for allocating manufacturing overhead. bids for jobs using a % markup over total manufacturing cost. After the new fiscal year began, asked Recycling to bid for a job that will take machine hours and direct labor hours to produce. The direct labor cost for this job will be per hour, and the direct materials will total Read the requirementsLOADING.... Requirement 1. Compute the total job cost and bid price if Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year. First calculate the predetermined overhead rate based on direct labor hours. Identify the formula and then compute the rate. Estimated yearly overhead costs / Estimated yearly direct labor hours = Predetermined overhead rate 348950 / 9970 = 35 per hour Next we will calculate the total job cost. Job Sheet Direct materials 25900 Direct labor 16500 Manufacturing overhead Total job cost Compute the bid price if decided to use direct labor hours as the manufacturing overhead allocation base for the year. (Round all amounts to the nearest whole dollar.) + = Bid price + = Requirement 2. Compute the total job cost and bid price if Recycling decided to use machine hours as the manufacturing overhead allocation base for the year. Calculate the predetermined overhead rate based on machine hours. Identify the formula and then compute the rate. / = Predetermined overhead rate / = per hour Next we will calculate the total job cost. Job Sheet Total job cost Compute the bid price if decided to use machine hours as the manufacturing overhead allocation base for the year. (Round all amounts to the nearest whole dollar.) + = Bid price + = Requirement 3. In addition to the bid from Recycling, received a bid of for this job from . What are the ramifications for Recycling? Whether or not Colwell wins the bid will depend on the allocation base the company chose to use during the year. Colwell's bid price will be $ if the company uses direct labor hours as the allocation base. In this case, the company will probably the job to Cusack Recycling, since its bid was $ However, Colwell will probably the bid if machine hours is used as the allocation base. Using machine hours as an allocation base results in a bid price of $ . Choose from any list or enter any number in the input fields and then continue to the next question.

Colwell Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Colwell estimates total manufacturing overhead to be $348,950. The company's managers are not sure if Cirect labor hours (estimated to be 9.970) or machine hours (estimated to be 13,958 hours) is the best allocation base to use for allocating manufacturing overhead. Colwell bids for jobs using a 31% markup over total manufacturing cost. After the new fiscal year began, Potter Paper Supply asked Colwell Recycling to bid for a job that will take 1,975 machine hours and 1,500 direct labor hours to produce. The direct labor cost for this job will be $11 per hour, and the direct materials will total $25,900 Read the requirements. Requirement 1. Compute the total job cost and bid price if Colwell Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year. First calculate the predetermined overhead rate based on direct labor hours. Identify the formula and then compute the rate. Estimated yearly overhead coats 348950 Estimated yearly direct labor hours = Predetermined Overhead rate 9970 35 per hour Next we will calculate the total job cost Job Sheet Direct materials Direct labor 25900 16500 Manufacturing overhead Tolal job cost Compute the bid price if Colwell decided to use direct labor hours as the manufacturing overhead allocation base for the year. (Round all amounts to the nearest whole dollar.) Bid price Requirement 2. Compute the total job cost and bid price if Colwell Recycling decided to use machine hours as the manufacturing overhead allocation base for the year. Requirement 2. Compute the total job cost and bid price if Colwell Recycling decided to use machine hours as the manufacturing overhead allocation base for the year. Calculate the predetermined overhead rate based on machine hours. Identify the formula and then compute the rate. = Predetermined overhead rate per hour Next we will calculate the total job cost. Job Sheet Total job cost Compute the bid price if Colwell decided to use machine hours as the manufacturing overhead allocation base for the year. (Round all amounts to the nearest whole dollar.) + Bid price + Requirement 3. In addition to the bid from Colwell Recycling, Potter Paper Supply received a bid of $123,500 for this job from Cusack Recycling. What are the ramifications for Colwell Recycling? Requirement 3. In addition to the bid from Colwell Recycling, Potter Paper Supply received a bid of $123,500 for this job from Cusack Recycling. What are the ramifications for Colwell Recycling? Whether or not Colwell wins the bid will depend on the allocation base the company chose to use during the year. Colwell's bid price will be $ if the company uses direct labor hours as the allocation base. In this case, the company will probably the job to Cusack Recycling, since its bid was $ However, Colwell will probably the bid if machine hours is used as the allocation base. Using machine hours as an allocation base results in a bid price of $

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