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8. Dark Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection

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8. Dark Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection $720,00 1,500,00 The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Bid prices are calculated as full manufacturing cost plus a 30 percent markup Direct materials Direct labor Machine hours Number of inspections Direct labor hours $4,500 $6,125 550 575 Total expected machine hours for all jobs during the year are 90,000, and the total expected number of inspections is 6,000. Required Compute the total cost of the potential job using direct labor hours to assign overhead. Determine the bid price for the potentiai job. a. b. Compute the total cost of the job usingsoengy osned costing and the appropriate activity drivers. Determine the bid price if activity-based essotig is used

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