5.6 – Please use my question and explain how you got your answer!


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5.6 – Please use my question and explain how you got your answer! 1 answer below » “Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $10,200. 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 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: View complete question » Department Fabricating Machining “Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $10,200. 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 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 Fabricating Machining Assembly Total plant Direct labor $300,000 $201,000 $401,000 $902,000 Manufacturing overhead $540,000 $804,000 $100,250 $1,444,250 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 Fabricating Machining Assembly Total plant Direct materials $11,900 $900 $5,500 $18,300 Direct labor $6,500 $1,700 $13,100 $21,300 Manufacturing overhead ? ? ? ? The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Requirement 1: Assuming the use of a plantwide overhead rate: a. Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the “%” sign in your
response.) Predetermined overhead rate % of direct labor cost Requirement 2: Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under
these conditions: a. Compute the rate for each department for the current year. (Omit the “%” sign in your response.) Predetermined overhead rate Fabricating Department % Machining Department % Assembly Department % View less » Dec 06 2013 05:27 PM

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