Colwell Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Colwell estimates total manufacturing overhead to be $370,000. The company's managers are not sure i direct labor hours (estimated to be 10,000) or machine hours (estimated to be 14,800 hours) is the best allocation base to use for allocating manufacturing overhead. Colwell bids for jobs using a 30% markup over total manufacturing cost. After the new fiscal year began, Potter Paper Supply asked Colwell Recycling to bid for a job that will take 2,000 machine hours and 1,700 direct labor hours to produce. The direct labor cost for this job will be $11 per hour, and the direct materials will total $25,300. Read the requirements Requirement 1. Compute the total job cost and bid price if Colwell Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year. First calculate the predetermined overhead rate based on direct labor hours. Identify the formula and then compute the rate. = Predetermined overhead rate Requirements 1. Compute the total job cost and bid price if Colwell Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year. 2. Compute the total job cost and bid price if Colwell Recycling decided to use machine hours as the manufacturing overhead allocation base for the year. 3. In addition to the bid from Colwell Recycling, Potter Paper Supply received a bid of $126,500 for this job from Cusack Recycling. What are the ramifications for Colwell Recycling