Colwell Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Colwell estimates total manufacturing overhead to be $350,175. The company's managers are not sure if direct labor hours (estimated to be 10,005) or machine hours (estimated to be 14,007 hours) is the best allocation base to use for allocating manufacturing overhead. Colwell bids for jobs using a 28% markup over total manufacturing cost. After the new fiscal year began, Eliot Paper Supply asked Colwell Recycling to bid for a job that will take 1,975 machine hours and 1,650 direct labor hours to produce. The direct labor cost for this job will be $14 per hour, and the direct materials will total $25,200. 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, Eliot Paper Supply received a bid of $125,500 for this job from Kristal Recycling. What are the ramifications for Colwell Recycling? Print Done