Question & Answer: × □ Frank-Goog × Y, A Parent Finan x" M Acces…..

Chrome File Edit View History Bookmarks People Window Help ) 0 / O AM Cloud- ( M Inbox (1,273) × □ Frank-Goog × Y, A Parent Finan x” M Access Conr C I ⓘ ezto.mheducation.com/hm.tpx?一ー0.3286236209376898-150639831 3471 Blast it said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $4,000. 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 Department Fabricating Machining Assembly Total Plant Direct labor Manufacturing overhead $357,000 $408,000 $ 91,800 S 856,800 Mandachuring overhead $307.000 40 0005 01,805 832 900 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 Direct materials Direct labor Manufacturing overhead Fabricating Machining Assembly Total Plant $ 3.400 $300 1,800 S 5,500 $ 3,600 600 6,600 S 10,800 The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs Required 1. Assuming use of a plantwide overhead rate a. Compute the rate for the current year. Predetermined overhead rate | % |of direct labor cost 25