Help Save & Exit Submit Case 2-22 Plantwide versus Departmental Overhead Rates: Pricing [LO2-1, LO2-2, L02-3, Lo2-4] Check my work Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the 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 uses a 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 ed ok Depar Fabricating MachiningAssenbly Manufacturing overhead Direct labor 378,000 432,000 97,200 $ 907,200 216,000 108,000 324,000 648,000 nt Jobs require varying amounts of work in the three costs in the three departments as follows: departments. The Koopers job, for example, would have required manufacturing $4,600 $6,000 $3,000 $7,800 7,800 $14, 300 s 200 s 500 Direct labor Manufacturing overhead Required 1. Using the c 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 overhead rates based on direct labor cost. Under these conditions Next Prevl3 of 4 Help Save & Exit Submit Case 2-22 Plantwide versus Departmental Overhead Rates: Pricing [LO2-1, LO2-2, L02-3, Lo2-4] Check my work Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the 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 uses a 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 ed ok Depar Fabricating MachiningAssenbly Manufacturing overhead Direct labor 378,000 432,000 97,200 $ 907,200 216,000 108,000 324,000 648,000 nt Jobs require varying amounts of work in the three costs in the three departments as follows: departments. The Koopers job, for example, would have required manufacturing $4,600 $6,000 $3,000 $7,800 7,800 $14, 300 s 200 s 500 Direct labor Manufacturing overhead Required 1. Using the c 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 overhead rates based on direct labor cost. Under these conditions Next Prevl3 of 4