I'm just trying to solve number 3 part I of the question.

Recently, the sales and marketing manager for Pasifika Company, Mr. Reece Rooney couldn't understand the result of two bids that the firm has submitted. According to the company's policy, a 50 percent mark-up is added to the full manufacturing cost when calculating the bid. One particular job (Job ADI) had been rejected by a prospective customer since the proposed bid was $4 per unit higher than the winning bid. However, a customer has accepted a second job (Job BOI) and was pleased with the favorable bid. This revealed that Pasifika's price was $44 per unit lower than the next-lowest bid. Reece knew that the implementation of the cost leadership strategy has resulted in Pasifika's competitive advantage, therefore he assumed that the issue must be related to cost allocation procedures. When Reece further investigated the matter, he found that Pasifika used a pre-determined plantwide overhead rate based on direct labor hours. The budgeted data used to calculate this rate follows: Department A Department B Total Fixed Overhead $3001000 $1,400.000 $1.700.000 Variable Overhead $1 per DLH $5 per MH Direct labor hours 20170 00 250.000 Machine hours 2010 00 120 000 140.000 Additional information on the two jobs are as follows: Job Aul Department A Department B Total Direct labor hours 5000 64000 Machine hours 200 700 Prime costs $1001000 $20 000 $120.000 Units produced 14,400 14.400 14.400 Department A Department H Total Direct labor hours 400 600 1.000 Machine hours 200 3.000 3.200 Prime costs $50.000 Units produced 1.500 1.500 1.500 In his attempt to investigate the costing of the two jobs, Mr. Rooney discovered that the overhead costs in the two departments are different. In particular, the overhead costs of Department It were higher than Department A since it uses more equipment and therefore has higher maintenance, higher power consumption, higher depreciation, and higher setup costs. Additionally, he did some reading on overhead cont allocation methods and found that allocating support department cost appropriately can result to increase accuracy of the product cost. Hence he collected the following information on four support departments an follows: Maintenance Power Setups General Dept Dept. Factory A B Fixed overhead $400,000 $120,000 $100.000 $500.000 $100,090 56501,000 Variable overhead $100,000 5105,000 $50.000 $125,000 $100,000 5150,000 Maintenance hours 1.500 7.010 Kilowatt hours 1.500 15.000 10,010 Direct labor hours 10.000 12,030 Number of setups 40 160 Square feet 25,000 40.000 SJ000 15,000 35,360 91,640 The following allocation bases joost drivers) seemed reasonable: Support Department Allocation Base Maintenance Maintenance hours Power Kilowatt hours Setups Number of setups General Factory Square feet REQUIRED 1. Advise Mr. Rooney on potential strategies he would implement to compete effectively on cost leadership strategy. 2 Calculate the unit bids for the two jobs using a plant wide OH rate based on direct labour hours. 3. () Using the sequential (step-down) method, calculate the departmental overhead rates using direct labor hours for Department A and machine hours for Department B. (ii) What would the unit bids for Job ADland Job A02 have been if these overhead rates had been in effect? (Round-off the allocation ratios to 3 decimal places before you allocate the support department costs 4. Discuss any recommendations you would give to Rooney regarding the method of allocating overhead cost