Blast it Said David Wilson, president of Teledex Company." We have just lost the bid on the koopers job by $ It seems we are either too high to get the job or too low to make any money on half the jobs we bids".
Teledex Company manufactures products to customers' specifications and operates the joborder costing system. Manufacturing overhead cost is applied to job 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
$$$$
$
Jobs require varying amounts of work in the three departments. The koopers job, for example, would have required manufacturing costs in the three departments as follows:
Department
Fabricating Machining Assembly Total plant
tableDirect Materials..........,$$$$
