Problem 2 O'Neil's Manufacturing, Inc. produces and sells plumbing fixtures. The company is preparing its 2019 manufacturing cost plan, which requires an analysis of the allocation of its indirect costs For that analysis, assume the company has two categories of indirect costs maintenance and inspection. Estimated maintenance and inspection costs for 2019 are: Maintenance Inspection Total $800,000 400,000 Additionally, O'Neil's is bidding to supply fixtures for a proposed construction project Job AA. For proposed Job AA, the company has made the following cost and activity estimates Direct materials Direct labor Machine-hours Number of inspections Direct labor-hours S6,000 S16,000 400 800 Of course, at present, the estimate lacks the allocation of indirect costs maintenance and inspection For the 2019 plan, Frank Bock, the budgeting director, estimates that they will incur 56,470 direct labor hours, 25,000 machine hours and they will conduct 800 inspections Required A. Using Direct Labor hours to allocate the indirect costs (called the "traditional method" of indirect cost allocation), estimate the total cost for proposed Job AA