Landers Recycling recycles newsprint, cardboard, and so forth, into recycled packaging materials. For the coming year, Landers estimates total manufacturing overhead to be $348.950. The company's managers are not sure if direct labor hours (estimated to be 0.070) or machine hours (estimated to be 13,958 hours) is the best allocation base to use for allocating manufacturing overhead. Landers bids for jobs using a 28% markup over total manufacturing cost. After the new fiscal year began Lundy Paper Supply asked Landers Recycling to bid for a job that will take 1.980 machine hours and 1.600 direct labor hours to produce. The direct labor cost for this job will be $13 per hour and the direct materials will total $25.700 Read the requirements 1. Compute the total job cost and bid price if Landers Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year. 2. Compute the total job cost and bid price if Landers Recycling decided to use machine hours as the manufacturing overhead allocation base for the year 13. In addition to the bid from Landers Recycling. Lundy Paper Supply received a bid of $124.000 for this job from Drund Recycling. What are the ramifications for Landers Recycling? Requirement 1. Compute the total job cost and bid price it Landers Recycling decided to use direct labor hours as the manufacturing overhead allocation base for the year First calculate the predetermined overhead rate based on direct labor hours. Identify the formula and then compute the rate - Predetermined overhead rate