1. Overhead Rates, Unit Costs

   Xanning 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	$200,000		$22,000		$250,000
   Direct labour hours	4,500		10,000		6,000
   Direct labour cost	$90,000		$150,000		$120,000
   Machine hours	5,000		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 labour hours.

   Janine has been asked to prepare bids for two jobs with the following information:

   	Job 1		Job 2
   Direct materials	$4,500		$8,600
   Direct labour cost	$1,000		$2,000
   Direct labour hours:
   Welding	10		20
   Assembly	60		20
   Finishing	30		80
   Number of machine hours:
   Welding	50		30
   Assembly	40		5
   Finishing	110		165

   The typical bid price includes a 30 percent markup over full manufacturing cost.

   Required:

   1. Calculate a plantwide rate for Xanning Company based on machine hours. $fill in the blank 1 per machine hour

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

   	Bid price
   Job 1	$fill in the blank 2
   Job 2	$fill in the blank 3

   2. Calculate departmental overhead rates for the producing departments. If required, carry your answers out to the nearest cent.

   Welding overhead rate	$fill in the blank 4 per machine hour
   Assembly overhead rate	$fill in the blank 5 per direct labour hour
   Finishing overhead rate	$fill in the blank 6 per machine hour

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

   	Bid price
   Job 1	$fill in the blank 7
   Job 2	$fill in the blank 8

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