1. Business
  2. Accounting
  3. quotblast itquot said david wilson president of teledex company quotweve...

Question: quotblast itquot said david wilson president of teledex company quotweve...

Question details





Blast it! said David Wilson, president of Teledex Company. Weve just lost the bid on the Koopers job by $4,000. 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 uses a job-order costing system. The company usesa 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 Manufacturing overhead Direct labor Fabricating Machining Assembly Total Plant 383,25e 438,eee 98,55e 919,888 s 219,e0e 109,508 $ 328,580 657,800 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 Fabricating Machining Direct materials Direct labor Hanufacturing overhead Assembly Total Plant $ 3,300 $ 8,100 $4,900 $ 6,600 400 s 700 8,600 $15,480 Required 1. Using the companys 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% overhead) a What b What would the bid price have been departmental predetermined overhead rates had been used to a of total manufacturing cost (direct materials, direct labor, and applied was the companys bid price on the Koopers job using a plantwide predetermined overhead rate? Complete this question by entering your answers in the tabs below.
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution