Earth and Artistry, Inc. provides commercial landscaping services. Sasha Cairns, the firm's owner, wants to develop cost estimates that she can use to prepare bids on jobs. After analyzing the firm's costs, Cairns has developed the following preliminary cost estimates for each 1,000 square feet of landscaping Direct material Direct labor (5 direct-labor hours at $10 per hour) Overhead (at $16 per direct-labor hour) $410 50 80 $540 Total cost per 1,000 square feet Cairns is quite certain about the estimates for direct material and direct labor. However, she is not as comfortable with the overhead estimate. The estimate for overhead is based on the overhead costs that were incurred during the past 12 months as presented in the following schedule. The estimate of $16 per direct-labor hour was determined by dividing the total overhead costs for the 12-month period ($632,000) by the total direct-labor hours (39,500) Regular Direct- Overtime Direct- Total Direct- Total Labor Hours Labor Hours Labor Hours Overhead January$ 54,000 49,000 52,000 53,000 49,000 55,000 59,000 53,000 49,000 53,000 50,000 56,000 $632,000 2,960 2,800 3,010 3,170 2,560 3,420 3,050 3,480 3,180 2,750 3,490 2,610 36,480 210 10 70 200 400 790 670 340 40 30 20 240 3,020 3,170 2,810 3,080 3,370 2,960 4,210 3,720 3,820 3,220 2,780 3,510 2,850 39,500 February March April May June August September October November December Total