Epstein Recycling recycles newsprint, cardboard, etc., into recycled packaging materials. For the coming year, Epstein Recycling estimates total manufacturing overhead to be $348,950. The company's managers are not sure if direct labour hours (estimated to be 9,970) or machine hours (estimated to be 14,200 hours) is the best allocation base to use for allocating manufacturing overhead. Epstein Recycling bids for jobs using a 22% markup over total manufacturing cost. After the new fiscal year began, Abbot Paper Supply asked Epstein Recycling to bid for a job that will take 2,850 machine hours and 1,650 direct labour hours to produce. The direct labour cost for this job will be $8 per hour, and the direct materials will total $25,300. Requirements Requirement 1. Compute the total job cost and bid price if Epstein Recycling decided to use direct labour hours as the manufacturing overhead allocation base for the year. (Round your answer to the nearest whole dollar.) First, calculate the predetermined overhead rate based on direct labour hours. Identify the formula and then compute the rate. Requirements = Predetermined overhead rate 1. Compute the total job cost and bid price if Epstein Recycling decided to use direct labour hours as the manufacturing overhead allocation base for the year. 2. Compute the total job cost and bid price if Epstein Recycling decided to use machine hours as the manufacturing overhead allocation base for the year. 3. In addition to the bid from Epstein Recycling, Abbot Paper Supply received a bid of $124,500 for this job from Kristal Recycling. What are the ramifications for Epstein Recycling? Print Done