Super Rat Machine Works, a manufacturing firm, manufactures sprockets for the Tree

Bicycle company. The company uses a normal job$-$order costing system. Currently

they are using a plantwide overhead rate based on direct labour hours and are

interested in understanding the impact of moving to a departmental overhead rate

structure with Cutting and Finishing departments using direct labour hours and

Machining department using machine hours.

Management has provided the following data for its three departments for the

coming year.

Management estimates costs and activities for a job, Job $1,$ and they need to provide

a quote to their customer. The quote price includes a $30\%$ mark up on the cost of the

job. Management estimates are noted below.

Using the above information to answer the following questions.

Calculate the departmental overhead rate for the Cutting department.

A

Calculate the departmental overhead rate for the Machining department.

A$.$

Calculate the departmental overhead rate for the Finishing department.

A

Using departmental overhead rates, calculate the bid price for Job $1.$