Job A500:
	Direct materials:
	Fabric FB70		180 bolts @ $350
	Lumber (No. 1 common)		20,000 board feet @ $0.12
	Other components		$26,600
	Direct labor:
	Cutting Department		400 hours @ $10
	Assembly Department		1,600 hours @ $8.75
	Machine time:
	Cutting Department		350 machine hours
	Assembly Department		50 machine hours
Job B75:
	Direct materials:
	Fabric FB70		26 yards @ $350
	Lumber (first and seconds)		2,200 board feet @ $0.12
	Other components		$3,236
	Direct labor:
	Cutting Department		70 hours @ $10
	Assembly Department		240 hours @ $8.75
	Machine time:
	Cutting Department		90 machine hours
	Assembly Department		15 machine hours

7. Calculate the following overhead rates for the furniture plant: (1) plantwide rate and (2) departmental rates. Use the direct method for assigning service costs to producing departments. Round your answers to two decimal places.

	Rate
Plantwide rate		fill in the blank	per DLH
Cutting department		fill in the blank	per MH
Assembly department		fill in the blank	per DLH

8. For each of the overhead rates computed in Requirement 7, calculate unit bid prices for Jobs A500 and B75. Round your answers to two decimal places.

	Unit Bid
Plantwide rates
Job A500		fill in the blank
Job B75		fill in the blank
Departmental rates.
Job A500		fill in the blank
Job B75		fill in the blank

Assume that the company's aggressive bidding policy is unit cost plus 50 percent. Did departmental overhead rates have any effect on Beauville's winning or losing bids? What recommendation would you make? Explain. Round your answers to two decimal places.