\"Blast it!\" said David Wilson, president of Teledex Company. \"We\'ve just los
ID: 2374773 • Letter: #
Question
"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $10,200. 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:
Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:
"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $10,200. It seems we're either too high to get the job or too low to make any money on half the jobs we bid."
Explanation / Answer
manufacturing overhead cost = 21,100 x 1.60 = $33,760 ============================================================================================================================================================================================= fabricating: 537,000/300,000 = 1.79 ============================================================================================================================= b. Machining: 806,010/201,000 = 4.01 ============================================================================================================================= c. assembly: 100,000/400,000 = 0.25 ============================================================================================================================= please rate my answer with five stars
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