Chad Application, Activity-flexed Costing, Bid Pri Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing $10,000 40,000 Engineering Other 50,000 10,000 Previously, Sanjay hall, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year wrw 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not might offer some advantages to his company. He decided that appropriate drivers for overled activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanday has been asked to prepare bids for two jobs with the following information: Jub 1 Job 2 Direct materials $4,600 $9,340 Direct labor $1,200 $2,200 Number of purchase orders 15 20 Number of setupe 3 4 Number of engineering hours Number of machine hours 41 10 200 200 The typical bid price includes a 40 percent markup over full manufacturing cost. Required: Note: When required, round your answers to the nearest cent 1. Calculate a plantwide rate for Firenza Company based on machine hours. per machine hour What is the lid price of waach job using this? Bid Price Job Job 2 2. Calculate activity rates for the four overhead activities. Punding Setup cost rate Engineering rate Other cost rate per purchase order persetu per engineering hour par machine hour What is the bid price of each job using the rate? Bid Price Job Jab 7 3. Which bids are more accurate?