"Don't tell me we ve lost another bidr exclaimed Janice Hudson, president of Pame Products Inc: "Tm atraid so; replied Doug Martin, the operations vice pretildent. "One of our competitors underbid us by obout $13,000 on the Hastings job," I just can'" figure it out," said Hodson. "ft beems we're either too high to get the job or too low to make any money on half the jobs we bid. What's happenedt Prime Products manufactures specialized geods to customers' specfications and operaten a job-order costing system. Manufoctiaing overhead cont is applied to jobs on the basis of direct labour cont. The following estimates were made at the beginning of the yetar: Jobs require varying amounts of work in the three departments. The Hastings job; for example, would have required manufacturing costs in the three departments as follows: The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs. Required: 1. Assuming the use of a plantwide overhead rote a. Compute the rate for the current year. b. Detcyenith the amouat af manufacturing crysthe ad cost elat wolud have besen applued to the I lastingit job. 2. Suppose that instead of using a plantwide overhead rate, the compary hod ured a separase predetermined oyerhead rate in rach department. Under these conditions. a. Compute the rate for each department for the curent yoar. b. Determine the omount of manufacturing overheod cost that would have beeri applied to the hastings job. 3. Thes part of the evuecbon it not part of your Connect assignment. 4. Assume that it is customary in the industy to bid jobs of 140 of of total manufoctuing cost (dvect maserials, direct labouc, and applied overheod. 2. What was the company's bid price on the Hastings job? b. What would the bid price have been if departmentel overhead rates had been used to epply overhead cost? 5. At the end of the year, the company assembled the following actual cost data felaning to all jobs worked on during the year 6. Compute the underopplied or overapplied overheod for the yeaf, oss uming that a plantwide overhend rate is used b. Compute the underapplied or overapplied overhead for the year, assuming that departmental overhead rates are used