Overhead Aplication, Activity-Based Costing, Bid Prices fires Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Purchasing 540,000 Setups 35,000 Engineering 50,000 Other 40,000 Previously Sanjay Bhatt, Firenza Company's controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjayas been reading about activity based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing number of setup tortor, engineering hours for engineering cout, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2.500 engineering hours Sanjay has been asked to prepare bids for two obs with the following information Job 1 ob 2 Directens 14.500 $9,340 Orar $1,200 32.100 her of purchase orders 15 20 umber 3 4 Numbering hours 10 umber of the 300 The concludes 40 percent markup overtuit manufacturing cost 200 Home Wround your answer to the recent 1. Caterina Comendon machine macho What the reaching that wid Price le Director $1,200 $2,100 Number of purchase orders 15 20 Number of setups 3 4 45 10 Number of engineering hours Number of machine hours 200 200 The typical bid price includes a 40 percent markup over full manufacturing cost. Required: Note: When required, round your answers to the nearest cent. 1. Calculate a plantwide rate for Firenza Company based on machine hours. per machine hour What is the bid price of each job using this rate? Bid Price Job 1 $ Job 2 2. Calculate activity rates for the four overhead activities. Purchasing rate per purchase order Setup cost rate $ per setup Engineering rate $ per engineering hour Other cost rate per machine hour What is the bid price of each job using these rates? Bid Price Job 1 Job 2 3. Which bids are more accurate