The gilster company a machine tooling firm has several

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The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager%u2019s salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $284,000. Each department%u2019s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:


Department A Department B
  Budgeted department overhead





      (excludes plantwide overhead) $ 141,100
$ 616,000
  Actual department overhead
162,000

636,000
  Expected activity:





    Direct labor hours
32,000

20,000
    Machine-hours
17,000

44,000
  Actual activity:





    Direct labor hours
33,500

19,400
    Machine-hours
17,800

46,000

For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining to job no. 110 are as follows:

  
  Direct materials $ 23,500
  Direct labor cost:


    Department A (2,600 hr)
39,000
    Department B (1,500 hr)
11,600
  Machine-hours projected:


    Department A
140
    Department B
1,200
  Units produced
8,000

Reference no: EM13578521

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