"Don't tell me we ve lost another bidl" exclaimed Janice Hudson, president or Prime Products Inc. I'm afraid so," replled Doug Martin, the operations vice president. "One of our competitors underbid us by about $12,000 on the Hastings job " I ljust can't figure it out"" sald Hudson. "It seems we're either too high to get the job or too low to make any money on half the jobs we bid. What's happened?" Prime Products manufactures specialized goods to customers' specifications and operates a job-order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labour cost. The following estimates were made at the beginning of the year. Jobs iequire varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing coste in the three departments as follows: The company uses a piantwice overnead rate to apoly manufacturing overnead cost to jobs. Aequired: 1. Assuming the use of a plantunce overnead cate: a. Compute the rate for the current year b. Determine the amount of manutactuting overhead cost that woule hove deen applied to the Hastingsiob. 2. Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department Under these conditions. a. Compute the rate for each department for the current yeat. a. Defermine the amount of manutacturing ovemead cost that wouia have been applied to the Hastings job 3. This part of the question is not part of your Connect assignment overneacl a. whut was the compenys bid price on the Hostings joo? 4. Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materiais, direct labour, and applied overhead) a. What was the company's bid price on the Hastings job? a. What would the bid pace have been if departmental overhead rates had been used to apply overhead cost? 5. At the end of the yeat, the company assembled the following actual cost data relating to alljobs worked on during the year. a. Compute the underappled or overapplied overnead for the year, assuming that a plantwide overhead rate is used. a. Compute the underapplied or overapplied overhead for the year, assuming that a plantwide overhead rate is used. b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used