"Blast It!" sald David Wilson, president of Teledex Company. "We've Just lost the bid on the Koopers job by $2,000. It seems we'reeither too high to get the job or too low to make any money on half the jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating Machining$ 358,750 $ 410,e00$ 205,000AssemblyTotal PlantManufacturing overhead92,250$ 307,500861, eee615, e00Direct labor$ 102,500Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturingcosts in the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 5eeAssembly$ 1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred:1. Using the company's 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 predeterminedoverhead 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% of total manufacturing cost (direct materlals, direct labor, and appliedoverhead).a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?Complete this question by entering your answers in the tabs below.Required 1ARequired 18Required 2ARequired 28Required 4ARequired 48Using the company's plantwide approach, compute the plantwide predetermined rate for the current year.Predetermined overhead rate% of direct labor cost "Blast it!" sald David Wilson, president of Teledex Company. "We've Just lost the bid on the Koopers Job by $2,000. It seems we'reeither too high to get the job or too low to make any money on half the Jobs we bid."Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating MachiningAssembly92,250Total Plant$ 358,750$ 205,000Manufacturing overheadDirect labor$ 410,e00%24$ 182,500861, e00615, e00$ 307,500Jobs requlre varylng amounts of work In the three departments. The Koopers Job, for example, would have requlred manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 5e0Assembly$1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred:1. Using the company's 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 predeterminedoverhead 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% of total manufacturing cost (direct materlals, direct labor, and appliedoverhead).a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2ARequired 28 Required 4ARequired 48Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would have beenapplied to the Koopers job.Manufacturing overhead cost applied

Question

&#34;Blast It!&#34; sald David Wilson, president of Teledex Company. &#34;We've Just lost the bid on the Koopers job by $2,000. It seems we'reeither too high to get the job or too low to make any money on half the jobs we bid.&#34;Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating Machining$ 358,750 $ 410,e00$ 205,000AssemblyTotal PlantManufacturing overhead92,250$ 307,500861, eee615, e00Direct labor$ 102,500Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturingcosts in the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 5eeAssembly$ 1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred:1. Using the company's 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 predeterminedoverhead 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% of total manufacturing cost (direct materlals, direct labor, and appliedoverhead).a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?Complete this question by entering your answers in the tabs below.Required 1ARequired 18Required 2ARequired 28Required 4ARequired 48Using the company's plantwide approach, compute the plantwide predetermined rate for the current year.Predetermined overhead rate% of direct labor cost &#34;Blast it!&#34; sald David Wilson, president of Teledex Company. &#34;We've Just lost the bid on the Koopers Job by $2,000. It seems we'reeither too high to get the job or too low to make any money on half the Jobs we bid.&#34;Teledex Company manufactures products to customers' specifications and uses a job-order costing system. The company uses aplantwide predetermined overhead rate based on direct labor cost to apply Its manufacturing overhead (assumed to be all fixed) toJobs. The following estimates were made at the beginning of the year.DepartmentFabricating MachiningAssembly92,250Total Plant$ 358,750$ 205,000Manufacturing overheadDirect labor$ 410,e00%24$ 182,500861, e00615, e00$ 307,500Jobs requlre varylng amounts of work In the three departments. The Koopers Job, for example, would have requlred manufacturingcosts In the three departments as follows:Fabricating$ 3,500$ 3,800DepartmentMachining$ 200$ 5e0Assembly$1,900$ 6,700Total Plant$ 5,600$11,000Direct materialsDirect laborManufacturing overheadRequlred:1. Using the company's 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 predeterminedoverhead 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% of total manufacturing cost (direct materlals, direct labor, and appliedoverhead).a. What was the company's bid price on the Koopers job using a plantwide predetermined overhead rate?b. What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2ARequired 28 Required 4ARequired 48Using the company's plantwide approach, determine the amount of manufacturing overhead cost that would have beenapplied to the Koopers job.Manufacturing overhead cost applied

Accepted Answer

:1a) predetermined overhead rate     total manufacturing cost/total direct labor    861,000/615,000…

e beginning of the year. Department Machining $ 410, eee $ $ 182,500 $ 307,500 $ 615, e00 Total Plant Assembly 92, 250 $ 861, eee ree departments. The Koopers Job, for exam