Required 1 (show your calculations)

a) Determine the amount of overhead that would be applied to the proposed project if activity-based costing is used.

Required 1 (show your calculations)

a) Determine the amount of overhead that would be applied to the proposed project if activity-based costing is used.

b) Calculate the total costs of the proposed job using activity-based costing.

c). Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent. (Round amounts to 2 decimal places.)

Required 2 (show your calculations)

a) Determine the amount of overhead that would be allocated to the proposed job if 40,000 direct labor-hours are used as the volume-based cost driver for the year (traditional method of allocation).

b) Determine the total costs of the proposed job using the traditional method of allocating overhead.

c) Determine the company's bid using traditional method of overhead allocation and the bid is based upon full manufacturing cost plus 30 percent. (Round amounts to 2 decimal places.)

Required 3 (show your calculations)

Which product costing method produces the more competitive bid?

Vader's Helmet Corporation has four categories of overhead. The expected overhead costs for each category and the expected activity for the four activity-based cost drivers that would be used in total for next year are as follows: Overhead Category Total Cost Cost Drivers Activity Level Maintenance $420,000 Machine-hours 20,000 Materials handling 180,000 Material moves 4,000 Setups 150,000 Setups 200 Inspection 300,000 Quality inspections 8,000 $1,050,000 Vader has been asked to submit a bid for a proposed job to make special black helmets that detach in parts. The plant manager believes that obtaining this job would result in new business in markets across the galaxy. Bids are usually based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct materials $10,000 Direct labor (750 hours) $15,000 Number of material moves 8 Number of inspections 5 Number of setups 3 Number of machine-hours 300