Answer:
manufacturing overhead is allocated based on direct labor:
fabricating machining assembling total
Direct labor $208,000 $104,000 $312,000 $624,000
Man. overhead $364,000 $416,000 $93,600 $873,600
overhead rate 1.75 4 0.30 1.4
Koopers job: using departmental overhead rates
fabricating machining assembling total
Direct materials $3,800 $400 $2,200 $6,400
Direct labor $4,400 $700 $7,000 $12,100
overhead rate 1.75 4 0.30
Man. overhead $7,700 $2,800 $2,100 $12,600
total cost $15,900 $3,900 $11,300 $31,100
bid price (150% of total manufacturing cost) = $46,650
Koopers job: using plantwide overhead rate
fabricating machining assembling total
Direct materials $3,800 $400 $2,200 $6,400
Direct labor $4,400 $700 $7,000 $12,100
overhead rate 1.4
Man. overhead $16,940
total cost $35,440
bid price (150% of total manufacturing cost) = $53,160
