Ross manufacturing produces machine parts on a job order basis. Ross gets orders after winning bidding. The bidding price is based on full cost with a 20% markup. This company has two service departments, A and B, and two production departments, C and D. The following table provides departmental information.

	Service	Departments	Production	Departments
	A	B	C	D
Direct Costs	$100,000 (total operating)	$200,000 (total operating)	$200,000 (overhead)	$150,000 (overhead)
Number of Employees	8	9	35	45
Maintenance Hours	2000	200	6400	2600
Machine Hours			10,000	1,000
Labor Hours			1,000	10,000

Department A uses number of employees and DepartmentB uses maintenance hours to allocate direct costs. Overhead costs of Department C and D are allocated to products based on machine hours and labor hours respectively.

Ross is preparing a bid for a job 601 that requires 4 machine hours per unit produced in Department C and no labor time in Department D. The expected prime costs per unit for Job 601 is $70.

1. Allocate the service department costs to production departments using the direct method.

2. Determine the bidding price for Job 601.