Potter Manufacturing Inc. has four categories of overhead. The expected overhead costs for each of the categories for the next year are as follows:

Costs Cost Driver Expected Activity

Maintenance $$120,000$ Machine hours $5,000$

Materials handling $18,000$ Material moves $600$

Setups $16,000$ Setups $200$

Inspection $60,000$ Inspection $1,000$

Currently, the company applies overhead using a predetermined overhead rate based on budgeted direct labour hours of $20,000.$ The company has been asked to bid on a proposed job. Usually bids are based on full manufacturing costs plus a markup of $35$ percent. Estimates for the proposed job are as follows:

Direct materials $$2,000$

Direct labour $$6,000$

Number of direct labour hours $600$

Number of material moves $4$

Number of inspections $6$

Number of setups $8$

Number of machine hours $80$

Required:

$1.$ If the company used direct labour hours as the cost driver, calculate the bid price of the proposed job.

$2.$ If the company used activity$-$based cost drivers to assign overhead, calculate the bid price of the proposed job.