OBJE Problem 5-30 Overhead Rates, Unit Costs Yanning Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labour hours Direct labour cost Machine hours Welding $200,000 4,500 $90,000 5,000 Assembly $22,000 10,000 $150,000 1,000 Finishing $250,000 6,000 $120,000 2,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that welding and finishing should base their overhead rates on machine hours and that! assembly should base its overhead rate on direct labour hours. (Continued) NEL Chapter 5 Job-Order Costing Janine has been asked to prepare bids for two jobs with the following information: Job 2 Job 1 $4,500 $1,000 $8,600 $2,000 20 60 Direct materials Direct labour cost Direct labour hours: Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing 110 The typical bid price includes a 30 percent markup over full manufacturing cost. te = 125 Required: 1 Calculate a plantwide rate for Xanning Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates? (Round all answers to the nearest dollar.) 2. J anufacturing