. Graham Company has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance Inspection $900,000 1,500,000 The plant currently applies overhead using direct labor hours and expected capacity of 100,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job. Additionally, the total expected machine hours for all jobs during the year are 100,000, and the total expected number of inspections is 12,000. Direct materials Direct labor Machine hours Number of inspections Direct labor hours $10,000 $13,000 800 900 Bid prices are equal to full manufacturing cost plus a 40 percent markup. Required: a. Compute the total cost of the potential job using direct labor hours to assign overhead. Determine the bid price for the potential job. b. Compute the total cost of the job using activity-based costing and the appropriate activity drivers. Determine the bid price if activity-based costing is used