Finishing Assembly Welding 62,000 $150,000 $220,000 Estimated overhead 6,000 4,500 10,000 Direct labor hours $120,000 $90,000 $150,000 Direct labor cost 2,000 5,000 1,000 Machine hours Currently, overhead is applied on the basis of machine hours using a plantwide rate However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various de- partments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: . c Job 2 Job 1 $9.340 Direct materials $6725 Direct labor cost $3,100 $1,800 Direct labor hours: Welding Assembly Finishing Number of machine hours: 20 10 60 20 20 70 Welding Assembly Finishing 50 50 60 25 90 125 The typical bid price includes a 35% mrkup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar. F Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various de- partments and decided that Welding and Finishing should base thecir overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: Job 1 Job 2 $6,725 $9.340 Direct materials Direct labor cost $1,800 $3,100 Direct labor hours: Welding Assembly Finishing 10 20 60 20 70 20 Number of machine hours: Welding Assembly Finishing 50 50 60 25 125 90 The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar Required: 1. Calculate a plantwide rate for Folsom Company based on machine hours. What is the bid price of each job using this rate? 2 Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates