"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $9,900 on the Hastings job." "I just cant figure it out," said Kovallas. "It seems were either too high to get the job or too low to make any money on half the jobs we bid anymore. Whats happened?"

Lenko 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 labor cost. The following estimates were made at the beginning of the year:

	Department
	Cutting		Machining		Assembly		Total Plant
Direct labor	$	312,000	$	211,000	$	398,000	$	921,000
Manufacturing overhead	$	534,000	$	825,970	$	86,000	$	1,445,970

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:

	Department
	Cutting		Machining		Assembly		Total Plant
Direct materials	$	12,000	$	800	$	5,600	$	18,400
Direct labor	$	6,500	$	1,700	$	13,000	$	21,200
Manufacturing overhead		?		?		?		?

The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs.

4.

Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). (Round your intermediate calculations to the nearest percent.) What would the bid price have been if departmental overhead rates had been used to apply overhead cost?