Juarez Manufacturing uses a job order costing system. It has two departments, Machining & Assembly. Machining is heavily automated while the Assemby department is labour intensive. The company currently uses a plantwide rate based on direct labour cost. However, it is considering changing to departmental rates where the overhead rate will be based on machine hours in the machining department and direct labour hours in the assembly department. The following data is available to you: Machini Assembly Budgeted overhead cost 2,000,000 1,540,000 Actual overhead cost 2,130,000 1,525,000 Budgeted direct labour cost 750,000 2,800,000 Actual direct labour cost 725,000 2,890,000 Budgeted machine hours 200,000 50,000 Actual machine hours 212,500 55,000 You will be asked to calculate the bid price for Job DC66. The actual results for this job are: Machinit Assembly Direct material 12,250 3,350 Direct labour cost 13,950 29,300 Machine hours 180 75 Total actual selling and administrative expenses for the year were $2,325,000. Required: Take 0/H rates to 3 decimal places. 1 Calculate the total product cost assuming the company uses a plantwide rate based on direct labour cost 2 Calculate the total product cost assuming the company uses departmental rates using the bases detailed at the start of the problem. 3 Calculate the amount of underrover applied overhead from part 2. Prepare the journal entry to close out the balance in the manufacturing O/H account What would be the effect on income of this entry?' 4 Assuming the company uses departmental rates and it uses a 60% markup to calculate bid prices, calculate the bid price for DC66