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! Required information [ The following information applies to the questions displayed below. ] Jasper Company, a machine tooling firm, has several plants. One plant,

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[The following information applies to the questions displayed below.]
Jasper Company, a machine tooling firm, has several plants. One plant, located in Saint Cloud, Minnesota, uses a job order
costing system for its batch production processes. The Saint Cloud plant has two departments through which most jobs
pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human
resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's
overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from
the Saint Cloud plant for the past year are as follows:
For the coming year, the accountants at the Saint Cloud plant are in the process of helping the salesforce create bids for
several jobs. Projected data pertaining only to job number 110 are as follows:
Direct materials
Direct labor cost:
Department A (2,200 hours)33,000
Department B (1,200 hours)6,000
Machine-hours projected:
Department A 100
Department B 1,200
Units produced 13,000
f. A Saint Cloud subcontractor has offered to produce the parts for job number 110 for a price of $6 per unit. Assume the Saint Cloud
sales force has already committed to the bid price of $71,221.00. Compute incremental cost (benefit) to make if the Saint Cloud plant
could use the facilities necessary to produce parts for job number 110 for another job that could earn an incremental profit of $19,000?
Assume the Saint Cloud plant uses three separate overhead rates to assign overhead costs to jobs based on machine hours.
Incremental profit earned by producing the other job
Incremental cost of buying the parts from the subcontractor
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