Mattawa Manufacturing Inc. has four categories of overhead. The expected overhead costs for

each of the categories for the next year are as follows:

Cost Driver

Expected Activity

Machine hours

$60,000$

Materials handling $250,000$ Material moves

$$510,000$

$20,000$

$60,000$

$3,000$

$21,000$

$12,000$

$24$

$4,000$

Number of material moves $100$

Number of inspections $120$

$$30,000$

$$24,000$

$8,000$

Direct materials

Direct labour

Number of direct labour hours

Number of setups

Number of machine hours

Currently, the company applies overhead using a predetermined overhead rate based upon

budgeted direct labour hours of $100,000.$ The company has been asked to submit a bid on a pro$-$

posed job. Usually bids are based upon full manufacturing costs plus a markup of $60$ percent.

Estimates for the proposed job are as follows:

OBJECtIVE $12$

CPA $3\mathrm{.}1\mathrm{.}3$; $3\mathrm{.}3\mathrm{.}1$

Required:

$1.$ If the company used activity$-$based cost drivers to assign overhead, calculate the bid price of

the proposed job.

$2.$ If the company used direct labour hours as the cost driver, calculate the bid price of the

proposed job.