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"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $9,900. It seems we're either too high to get the job or too low to make any money on half the jobs we bid."

"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $9,900. It seems we're either too high to get the job or too low to make any money on half the jobs we bid."

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: The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Requirement 1: Assuming the use of a plantwide overhead rate: a. Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the % sign in your response.) Predetermined overhead rate % of direct labor cost b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. (Round your answer to the nearest dollar amount. Omit the S sign in your response.) Manufacturing overhead cost

Explanation / Answer

a. 39% of direct labor cost b. $120,000

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