Question 1: 20 points Martin Manufacturing Corp. has four categories of overhead costs. The expected total overhead costs for each category for 2023 are as follows: Repairs and maintenance (R&M) $210,000 Materials handling $90,000 Setups $75,000 Inspection $150,000 The company has been asked to submit a bid for a proposed job for Fender Corp. The plant manager believes that obtaining this job would result in new business in future years. Bids are usually based upon full manufacturing cost plus 30 percent. (This is the proposed revenue from the contract if accepted.) Estimated costs and relevant activities for the proposed job are as follows: Direct materials $5,000 Direct labor (375 hours) $7,500 Number of materials moves 4 Number of inspections 3 Number of setups 2 R&M machine-hours 150 Estimated total company-wide activity for 2023 for the four activity-based cost drivers that would be used is below: Machine-hours for R&M 10,000 Moves in handling materials 2,000 Number of setups 100 Number of quality inspections 4,000 Required: a) Determine the overhead rate if the company uses the traditional, single plant-wide rate approach if 20,000 direct labor-hours is used as the volume-based cost driver. b) Determine the amount of overhead that would be applied to the proposed Fender project if activity-based costing applying the four cost drivers is used. c) Determine the total costs of the proposed job if each of the alternatives in parts b) and c) are used. d) Briefly explain the logic behind using activity-based costing instead of the traditional single plant-wide rate approach.