Question: I'm having difficulties calculating some of these problems. Blast it said David Wilson, president of Teledex Company We've just lost the bid on the Koopers
Blast it said David Wilson, president of Teledex Company We've just lost the bid on the Koopers job by $2,000. 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 Direct labor Man fecting overhead 364,000 416,000 93 873800 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 Manuactring ovenead 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 Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 2Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions: Compute the rate for each department for the current year
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