Overhead Rates, Unit Costs

Folsom 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:

Welding/Assembly/Finishing

Estimated overhead$220,000/ $62,000/ $150,000

Direct labor hours4,500/ 10,000/ 6,000

Direct labor cost$90,000/ $150,000/ $120,000

Machine hours5,000/ 1,000/ 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 labor hours.

Job 1		Job 2
Direct materials	$6,725		$9,340
Direct labor cost	$1,800		$3,100
Direct labor hours:
Welding	20		10
Assembly	60		20
Finishing	20		70
Number of machine hours:
Welding	50		50
Assembly	60		25
Finishing	90		125

The typical bid price includes a 35% markup over full manufacturing cost.

What is the bid price of each job using this rate? If required, round your answers to the nearest dollar.

JOB 1:?????

JOB 2: ????

What is the bid price of each job using these rates? If required, round your answers to the nearest dollar.

JOB 1: ?????

JOB 2: ??????