Helman Inc. has three categories of overhead. The expected overhead costs or each of the categories for next year are as follows: Activity Costs Cost Driver Expected Activity Machining $360,000 Machine hours 90,000 Setups $108,000 Number of production runs 90 Inspection $117,000 Inspection hours 1,800 $585,000 Currently, the company uses a normal job-order costing system with overhead assigned on the basis of direct labour hours. For last year, the company budgeted 20,000 hours. Recently, the company has considered bidding on a proposed bid. Bids are typically based on full manufacturing costs plus a 50% markup. Estimates for the proposed job are as follows: Direct materials $15,000 Direct labour $12,000 Number of direct labour hours 400 Number of machine hours 2,100 Number of production runs 2 Number of inspection hours 150 Required (A) Compute the predetermined overhead rate and determine the bid price of the proposed job using the existing costing system. (B) If the company uses activity-based cost drivers to assign overhead, compute the activitybased costing rates and recompute the bid price of the proposed job. (C) Should all companies adopt activity-based costing? Why or why not?